Florida City Conducts Twin Searches
January 29, 2008
Two Florida pension systems have launched searches for a new investment consultant, which does not bode well for incumbent Merrill Lynch Consulting Services.
The $119.7 million City of Pensacola General Pension and Retirement Fund and the $92.6 million City of Pensacola Firefighters' Relief and Pension Fund are looking for firms to assist with services such as asset allocation and policy revisions and reviews, manager searches and performance reviews and analysis.
"Both general and fire pension boards of trustees are doing the RFP because of the issues with Merrill Lynch, Michael Callaway and the [Securities and Exchange Commission]," explained Cheryl Jackson, payroll and retirement manager with the city.
The Pensacola plan's aren't the first to take note the SEC's investigation into alleged regulatory violations by Callaway, as the $1.1 billion Jacksonville Police and Fire Pension Fund terminated the firm for the very same reason last November (See IMW, 11/12/07).
Mark Herr, spokesman for Merrill Lynch, did not return calls by press time regarding the possible action by the Florida funds.
The two plans could hire different consultants, as they are entirely separate and act independently, Jackson explained. The City's police pension system, for example, retains Bogdahn Consulting rather than Merrill Lynch.
The deadline for proposal submissions is Feb. 28 for the general fund and Feb. 29 for the firefighters' fund. The RFPs are available at ci.pensacola.fl.us/live/bids.asp.
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