US - The Colorado Public Employees Retirement System has announced it will not pay bonuses to staff for 2008 results.
The pension fund paid over US$1.3m to employees in 2006 and 2007. Bonuses are paid over two years and ranged from $2,888 to a high of $66,371.
In-house investment staff manages 60% of the PERA's $40bn portfolio.
PERA is not the only pension to take action over incentive pay. Globally there has been increased scrutiny on bonus payments are pension funds generally post record losses.
Chief investment officer at the Teachers' Retirement System of Texas T. Britton Harris in February announced he forfeited his bonus estimated at $167,838 after the pension fund lost 27%. (Global Pensions; 16 February 2009)
In Sweden, the government recently banned bonus payments at all government-owned entities, including the pension buffer funds. (Global Pensions; 25 March 2009)
Also yesterday, Colorado governor Bill Ritter signed a bill to consolidate the state's defined contribution plans - the State of Colorado Public Officials and Employees' Plan and the State of Colorado 457 Plan. The merger will be effective on 1 July 2009.
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point