Macon-Bibb to seek out firms to manage $112 million pension plan

Macon-Bibb County will allow firms to bid on managing its $112 million pension plan.

The County Commission voted Tuesday to start the process of accepting proposals for the plan that has been managed for more than two years by Florida-based Independent Portfolio Consultants. The move comes after two of the company’s top advisers over the county’s pension plan left the company, and several investors filed an involuntary bankruptcy claim against the firm.

Independent Portfolio’s officials said Tuesday that while the firm has undergone some corporate restructuring, it has remained a good steward of the pension plan. The portfolio outperformed its 2016 benchmark by $1.6 million, they said.

The County Commission serves as the board of trustees for the plan.

“We invite and solicit IPC to engage in the (request for proposal) to make their best case,” Mayor Robert Reichert said at Tuesday’s pension plan meeting. “We’re not saying they can’t do it. We’re just trying to give everyone a level playing field and let (commissioners) select.”

Arun Kaul, the company’s president and chief investment officer, said he expects the involuntary bankruptcy filing to be resolved this month. There is no risk to the county’s plan since the funds are part of a bank’s custodial account, and Independent Portfolio continues to have a strong group of investors, he said.

“The money is completely separate,” Kaul said at Tuesday’s pension meeting. “There’s no risk to the pension assets.”

Several county officials said Tuesday having Independent Portfolio and other companies have the ability to rebid will allow them to interview each of the firms, which did not happen in 2014 when the company was recommended by two county administrators.

There was a lack of communication between Independent Portfolio, the mayor’s administration and commissioners over some of the company’s changes, some commissioners said.

Commissioner Larry Schlesinger said County Manager Dale Walker was made aware of some of the shakeup in November, but it was not until January when commissioners were told about it.

“I just really feel like there is some sort of breakdown on communication on this end,” Schlesinger said. “I think it was (Walker’s) responsibility to tell us, the fiduciaries, that something needed our attention and we needed to be informed.”

In November 2016, Walker informed Independent Portfolio that he had “serious concerns” about some of the corporate restructuring taking place. When the county agreed to select Independent Portfolio as manager of the plans, it was in part because of who was the lead consultant, Walker said in an email.

On Jan. 5, Reichert informed commissioners of the company’s departures and involuntary bankruptcy filing.

Commissioners Gary Bechtel and Schlesinger have advocated for months to putting the plan out for bid again. They have said they were concerned about the amount of fees charged by Independent Portfolio and that Walker did not disclose he had a previous professional relationship with a then-Independent Portfolio senior consultant.

Commissioner Elaine Lucas said Tuesday that many of her questions about the company have been answered and after hearing their reports, they have been successful in making money for retirees.

Kaul said that Independent Portfolio is also undergoing changes to make sure it make its clients are aware of any potential issues.

Flights to D.C.

The County Commission also cleared the way for an airline carrier to offer flights from Middle Georgia Regional Airport to Washington, D.C.

The commission voted Tuesday to accept a $4.7 million federal grant that would subsidize flights over a two-year period. The airport will have Tennessee-based Contour Airlines provide flights to Washington Dulles International Airport starting in 2017.

In Macon, Contour would fill the void left by the departure of Silver Airways in November 2014, which operated just nine months at the airport.

“I’ve gotten calls from people interested in the air service and i think it is gong to be good for all of Macon-Bibb,” Bechtel said Tuesday.

Dangerous Dogs

Macon-Bibb will create a new board to oversee cases where a dog is deemed dangerous.

County commissioners approved the resolution Tuesday that will form a new panel comprised of some animal welfare and medical experts. The board will replace the Bibb County Board of Health in handling cases that are appealed after a ruling by the welfare department.

Officials have said the new board provides better expertise for the types of cases heard in the appeals.

This story was originally published January 17, 2017 at 6:57 PM with the headline "Macon-Bibb to seek out firms to manage $112 million pension plan."