Letter: Money-saving moves for city's Pension Fund

ISSUE | CITY PENSIONS

Money-saving moves

The story about the Philadelphia Pension Board's approval of $7.7 million in bonuses next year downplayed and omitted important steps taken to help the pension fund's long-term health ("Anemic pension fund OKs bonuses, Saturday).

The board's vote to lower its assumed earnings rate from 7.8 percent to 7.75 percent was not mentioned until the last sentence. Lowering that rate has many positive impacts, including requiring the city to contribute more. This reduction was part of a multiyear process that has increased city's contribution by more than $100 million a year.

The board also took an important step to lower its costs and increase its earnings by jettisoning four poorly performing hedge funds and authorizing the fund's chief investment officer to notify three other funds that they will need to reduce their fees to keep managing our pensioners' money ("Pension board cuts back on hedge funds," Monday).

Pension Board members take our responsibility very seriously.

|Rob Dubow, Philadelphia director of finance; chair, Philadelphia Board of Pensions and Retirement