Friday, July 22, 2016

GAO Agrees to Probe Central States Pension Fund Investments

The GAO will investigate the financially beleaguered Central States pension fund's investment decisions, an agency official confirmed to Bloomberg BNA.

The Government Accountability Office's decision to investigate the Central States, Southeast and Southwest Areas Pension Fund's investment decisions was in response to a request from 51 Democratic members of Congress, including 10 senators.

The lawmakers asked the GAO to probe the fund's investment decisions going back to 1982, when the fund came under the supervision of a court-ordered consent decree.

Charles Jeszeck, the GAO's director of education, workforce, and income security, told Bloomberg BNA June 28 that his agency expects to make staff assignments and begin work on the project soon.

The lawmakers said they hoped the GAO would determine if there was any wrongdoing that led to the fund's severe financial woes. The fund has projected it will be insolvent in 10 years or less.

The Treasury Department on May 6 rejected the fund's application to cut participants' benefits in an attempt to avoid insolvency.

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