July 28, 2013

Questions raised about Atlanta pension arrangement


Associated Press

— The financial adviser managing Atlanta’s three pension systems says the city investing in a fund that was created by his own firm isn’t a conflict of interest.

The Atlanta Journal-Constitution reported Sunday that Atlanta’s firefighter, police and general employee pension boards approved a plan to invest $64 million in a fund created by Gray & Co., owned by city financial adviser Larry Gray.

The newspaper reports Gray’s firm is also making about $400,000 annually to pick the best investments for the city’s pension funds.

Atlanta Chief Financial Officer Jim Beard sits on all three pension boards and says Gray’s ownership of the fund doesn’t impact his ability to be impartial in advising those overseeing Atlanta’s $2.5 billion pension system. The city’s law department also stands by the arrangement.