“While our contract allows for immediate termination, we plan to continue to serve the Fund for up to 30 days to assist transition,” Wilshire said in a statement Monday.
Wilshire has served as investment consultant to the Fund for 11 months beginning on Oct. 1, 2010.
What triggered its resignation was the enactment of Public Law 17-51 despite the Fund’s opposition.
According to Wilshire, “The newly enacted [law] potentially allows our existing contract terms be voided or altered by the Fund’s beneficiaries at any time in the future AND can be retroactively applied up to 12 years in the past.”
For Wilshire, this has created “significant uncertainties in the business-contracting environment” and put into question the Fund board’s authority in contracting with outside parties.
“Wilshire finds it impossible to continue performing our duties under the current contract due to these circumstances,” it stated.
It also expressed appreciation for the opportunity to work with the Retirement Fund board and staff in the past year.
The consultant believes the pension agency has been facing “enormous challenges from aggressive drawdowns” due to years of delinquent employer contributions and unchecked benefits granting.
“The [Fund] board and staff have been working tirelessly trying to save the Fund. Wilshire appreciated their loyalty to the beneficiaries and their work ethics and professionalism,” Wilshire said.
To save the Fund from depletion, it added, focused efforts from the entire community are essential.
Wilshire said it has communicated its views regarding the Fund’s crisis to the Legislature and the public during last month’s visit by its managing principal Maggie Ralbovksy.
“While we hoped our efforts would create some positive actions, we were disappointed with the enactment of P.L. 17-51, which further endangers the Fund and diverts precious resources from tasks of saving it,” Wilshire said.
