Cash: Secrecy threatens state pensions

Wanda Garner Cash, UNIVERSITY OF TEXAS

Monday, October 13, 2008

Even though we might not like what we see, transparency is critical in these gloomy financial times as Texans seek scrutiny of their state retirement investment plans.

And even though investors have a right to information about their pension plan investments, taxpayers, teachers and public employees traditionally have been denied that information by private investment managers who say divulging details of where they're putting our money would jeopardize potential profits.

What they don't say is that allowing public access to those details also might reveal risky investments, brother-in-law deals and bad decisions. Basically, fund managers have sought to use our money in secret, without any accountability to the investors who've entrusted them with their retirement.

At stake is the level of access and scrutiny available for the way private firms invest and manage billions of dollars in government funds and pension portfolios.

 

FULL ARTICLE: http://www.statesman.com/opinion/content/editorial/stories/10/1014cash_edit.html