Just got done reading about Senate Omnibus Retirement Bill (1951), authorizing $14.3 million in ongoing aid starting in 2017 to Teachers Retirement Association to fund the merger of the Duluth Teachers Retirement Fund Association, and $7 million in ongoing aid to the St. Paul Teachers Fund Association, also starting in 2017. Meanwhile the PERA board of trustees voted to increase individual funding and employer funding by 0.25%. Nothing is being done to address the high management fees involved in the administration of PERA which charges 2.4%. As a former FINRA 6 and 63 licensed broker. This is an excessive management fee.  0.5- 2.0% is pretty standard in the retirement and insurance industry. The lower end of the spectrum at 0.5% is typically reserved for fixed investments like government bonds. 2.0% percent is used as the highest allowable. Reducing overall administration and management costs would impact the health of the PERA funds and would not cost the tax payer a dime. When you consider the overall fair market value (FMV) under management is over 15 billion those management fees add up. PERA is currently under-funded by over 5 billion at this time. Instead of spending tax payer money to put a band-aid on why don't we as tax payers demand better management for our public pensioners?


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