SACRAMENTO, Calif. (AP) — The California Public Employees’ Retirement System paid $11 million to an East Coast law firm for an internal review of the nation’s largest public pension fund.

   The Los Angeles Times says some lawyers and financial experts are surprised by the high legal fees and suggested investigative work could have been done by the California attorney general’s office, which has sued two former CalPERS officials over fraud allegations.

   CalPERS oversees a $232 billion fund.

   The 18-month review by Washington, D.C.’s Steptoe & Johnson firm found support for allegations of corruption, bribery and influence peddling.

   CalPERS says it used the review’s findings to negotiate $215 million in fee reductions from private equity investment managers who handle large assets.

   CalPERS chief investment officer Joseph Dear says the study was worth the cost.

  
   (Copyright 2011 by The Associated Press.  All Rights Reserved.)

Comments (5)
  1. Steve Bowlus says:

    And how many CalPers employees participated in the corruption, bribery and influence peddling? Are they still employed? Why?

    Having a law firm with no axe to grind (and the AG does!) is a good idea. Aggressive followup on these personnel matters … the AG is probably a better choice for this.

  2. bri says:

    the new state employees need to be on a smaller Calpers retirement and Social Security and a 401K just like ATT and others, there has been so much corruption with CalPers in recent years, plus these high retirements (some 90% of their wages) is going to cost the taxpayers major money one day soon

    1. Jannet says:

      OH, quit your crying already! You’re just jealous of the Calpers participants! LOSER!

    2. Jannet says:

      The only reason you’re jealous is because the company you work for, like ATT, is RIPPING YOU OFF….THEY SHOULD BE PAYING YOU ACCORDINGLY INSTEAD OF POCKETING THE $$$ AND MAKING RECORD BREAKING PROFITS!!!! LOSER!

  3. John says:

    WHAT A WASTE OF $$$$$$!!!!! This is FRAUD and the AG should look into it and NAIL THOSE RESPONSIBLE!!

Leave a Reply