US - The California Public Employees' Retirement System (CalPERS) generated $963m in cost savings in 2010 by increasing operational efficiency while reducing waste and redundancy, according to a staff report.
The CalPERS Investment Office reduced operational costs by $357m by reductions in management fees charged by investment partners and managers. Additional efficiencies in investment operations are expected to produce $4.6m in savings in 2011, the report said.
The CalPERS health benefits programme generated the bulk of the savings - about $600m - by removing high-cost hospitals and other initiatives.
"In recognition of challenging financial circumstances, we are aggressively looking at ways to reduce our operating expenses," said CalPERS chief executive oOfficer Anne Stausboll. "Through innovations in our health benefits programme, lower investment management fees, and other operational efficiencies, we were able to generate nearly $1bn in cost savings last year. We expect to save another $287m in the current year."
Meanwhile, incumbent CalPERS board member Henry Jones was declared the unofficial winner of the CalPERS board seat that represents the pension fund's retirees when the filing deadline of May 13, 2011, passed without another candidate submitting a nomination petition.
He will serve another four-year term on the CalPERS board of administration, beginning January 15, 2012. His re-election is unofficial until it is formally certified by the Secretary of State.
The Salvus Master Trust will welcome another 1,200 members and 20 employers as it absorbs the £7m Complete Master Trust.
Aon has appointed Emma Adair to lead client service for its UK investment team.
The Competition and Markets Authority (CMA) has published three working papers as part of its probe into investment consultants and fiduciary managers - saying it has no concerns over concentration in these markets.
In this week's Pensions Buzz, we wanted to know whether contract-based, trust-based or a master trust arrangement would be best for a new defined contribution (DC) scheme.