MEMPHIS, Tenn. — The discussion continues as city leaders look for ways to fix the city’s ailing pension plan.
Council members are asking the city’s pension fund consultants to consider minority participation when it comes to managing the funds.
Council members say minority participation is important when it comes to the pension plan. Harold Collins says there aren’t any minorities managing the city`s funds. He asked consultants with the Segal Rogers Casey Company why.
“I’m just asking that based on your requirements, there are no locally minority- or women-owned firms that could manage anything between $8 million and 205 million, is that what you’re saying?” he asked.
Consultants with Segal Rogers Casey say it’s difficult finding the right people to manage that much money.
“All I can say is that we ultimately have to make the best decision we can possibly make because our first obligation. We have the obligation to make sure we manage them safely and maximize the returns,” a consultant said.
Although consultants are optimistic, some city leaders say it shouldn’t be challenging to find minorities to do the job.
“That’s a bunch of bull. You’re going to sit up and tell me in a city this size that we don’t have companies that can do the job that they say other outside companies can do. I mean, are we stupid in this city? I don’t think so,” councilwoman Janis Fullilove said.
Now there’s concern about how much money is in the pension plan, where it comes from, and who manages it.
“I cannot guarantee that some of those assets we will be able to place with local investment managers that will be minority- or female-owned. Again, I can never guarantee any of that because we always have to balance that and make sure we’re being careful,” a consultant said.