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GAO instructed to assess federal pension money managers diversity

Matt Pierce
March 12, 2016

The Government Accountability Office or GAO will be instructed to assess exactly why all the federal retirement plans’ asset managers are not diverse enough. The federal pension getting retirees are a great in number and their rights and roles have always been put in high regard by the government.

Federal pension funds’ money managers not diverse enough:

It has been heard by many sources that a lot of Congress members

are preparing a letter which is going to be sent to the Controller General of the GAO. Gene Dodaro, the man responsible for giving the letter a review is going to be asked to get this matter looked at and review the contemporary obstacles to successful implementation as soon as possible. Some of the names of the members of the Congress are Rep. Gregory Meeks, Senator Cory Booker and Maxine Waters. In their letter they mentioned that they are highly pensive and concerned about this issue of the missing diversity. They believe that the firms that have been performing excellently have been almost always left aside and not given the chance to participate as brokers or managers of the federal plans.

It was further mentioned in the letter that there have been major pursuits of diverse managerial and dealing programs by the private sector, local and even state retirement plans but the federal pension plans have not been able to replicate this. The letter asks around 16 questions that are majorly about the selection criterion and the policies regarding the reporting of the managers and of course the brokers. The group also mentioned that however the GOA has tried to make their point of views heard, they haven’t been astutely able to get their message across and this absence of diversity appears as a discrepancy to them. Let’s see how this further develops.