PERAC Memo #39 - 1997: Retirement System Expenses

Retirement System Expenses

Summary

This memo follows up on Memo #31/1997 regarding the FY1999 Pension Fund Appropriation calculation, requesting that boards break down their FY1998 Expense Fund budgets into administrative expenses versus investment-related expenses (management, consulting, and custodial fees), since only non-investment expenses should be included in the appropriation figure. Boards must complete and return the attached form specifying FY1998 administrative expenses, investment-related expenses, total Expense Fund budget, and whether any investment-related costs were paid from the Expense Fund in FY1997.

Full Text

PERAC MEMO #39/1997 M E M O R A N D U M TO: All Retirement Sy stems FROM: Jim Lamenzo RE: Retirement System Expenses DATE: October 29, 1997 We have received a number of inquiries regarding Question 8 in PERAC Memo #31/1997 dated Sept. 9, 1997 concerning the Pension Fund Appropriation for Fiscal Year 1999. As part of that questionnaire, we requested that you notify us as to the amount that was approved by your board for expenses for fiscal 1998 in order that such expenditures would be included in the calculation of the Pension Fund Appropriation. In prior years some systems paid investment expenses from investment income and others paid such expenses from the expense fund. We are requesting (if you have not already done so) that you provide a breakdown of the expected Expense Fund payments indicating the amount to be expended for administrative purposes and the amount to be expended for investment purposes (Management Fees, Investment Consulting Fees, and Custodial Fees). This will allow us to add only those non investment expenses to the amount required to be appropriated. If your system currently pays investment expenses from the Expense Fund, this amount would be added to the figure shown in our appropriation letter. In addition if you cannot provide a copy of the approved budget, please provide your best estimate as to the fiscal 1998 expenses. Please complete the bottom section of this memo and return it to this office as soon as possible. Thank you for your help in this matter and please do not hesitate to call if you have any questions.

_______________________ Retirement System Fiscal 1998 Administrative Expenses $__________________ Fiscal 1998 Investment Related Expenses $__________________ Total Fiscal 1998 Expense Fund Budget $__________________ Did your system expend any investment related funds from the Expense Fund in fiscal 1997 and if so, how much? yes____ no____ $__________________