Question raised over legality of Macon-Bibb commission's vote on pension plan

A proposal for a new pension plan consultant will be headed to the Macon-Bibb County Commission for a vote Tuesday despite a question of the legality.

County officials are set to vote on a resolution to name the Bogdahn Group to manage the $220 million portfolio of the Macon Fire and Police Employees Retirement System. But on Monday, pension board Chairman Danny Angelo asked the County Attorney's Office to review whether a resolution commissioners passed a few years ago allows the commission to vote on a new consultant.

Angelo questioned the legality of the upcoming vote since the fire and police pension plan is a "stand-alone" plan.

"This contract is not with the county," Angelo said. "It's with the fire and police and pension board."

The vote on the consultant, however, remains on Tuesday's County Commission agenda because of a resolution passed by the Macon City Council in 2012. That resolution gives the local governing body the authority to set a $20,000 cap on how much money the fire and police pension board can spend without needing authorization.

Two pension board members -- Gary Bechtel and Larry Schlesinger, who also serve on the County Commission -- say Tuesday's vote should be a formality. They are asking commissioners to honor the pension board's decision to have Bogdahn replace Independent Portfolio Consultants, also known as IPC.

"The (pension) board is really constituted to run the day-to-day operations of the fund itself. Its integrity and authority has to be respected," Schlesinger said.

Commissioner Scotty Shepherd said he thinks switching from IPC is a poor business decision. He questioned if personal issues with IPC dating back to earlier this year are playing a role in the proposed change.

IPC drew some concerns in April from Schlesinger and Bechtel after they said they were unaware of a former professional relationship between an IPC senior consultant and County Manager Dale Walker.

IPC also manages the Macon-Bibb active pension plan and the former city of Macon plan.

"It's going to cost a good bit more money," Shepherd said about a change in consultants. "If they go ahead and do it, the proof will be in the pudding. The company we have now has made millions of dollars."

The fire and police portfolio increased about $10 million during a six-month period with IPC, Walker has said.

Some members of the pension board also have noted that $4 million to $5 million of the portfolio was lost during the transition to IPC.

Schlesinger said his vote to switch consultants is about finding the firm that would be the best steward of the pension plan.

Bogdahn manages $63 billion in assets of pension funds with public institutions. The company would also save the pension plan $500,000 in consultant fees each year, he said.

"Bogdahn should be the consultant because the board of fire and police determined that was going to be a much better situation for the fund and its pensioners going forward," Schlesinger said.

Bechtel, who voted against IPC taking over the active Macon-Bibb pension plan, said Bogdahn will better handle a diverse approach of fiscally managing the portfolio.

"I'm confident they can get us a 7.5 percent or more annual return, which is what our investment policy instructs us to do," he said.

Also, on Tuesday's County Commission agenda:

A vote on a maintenance contract with Williams Communication for public safety communications. The first year of the contract is for $290,250 with subsequent years not to exceed an annual 5 percent increase.

A decision whether the county will spend an additional $1.18 million on renovations to the former Sears Roebuck building that will become the downtown annex for the Bibb County Sheriff's Office. The funds would come from several other projects, including a future fire station in east Bibb County. The resolution includes an amendment that the east Bibb fire station project will recoup the $850,000 from leftover money from other fire station projects.

A resolution to place two signs honoring a pastor on Courtland Avenue at its intersections with Napier and Montpelier avenues. The signs would say "Dr. Walter L. Glover Jr. Way" after the longtime pastor of Greater Zion Hill Missionary Baptist Church. The resolution comes as a compromise that would keep the Courtland Avenue name while also meeting requests to recognize Glover for his work in the community.

To contact writer Stanley Dunlap, call 744-4623 or find him on Twitter@stan_telegraph.

This story was originally published October 19, 2015 at 10:21 PM with the headline "Question raised over legality of Macon-Bibb commission's vote on pension plan ."