PA Auditor General To Examine State Employee Retirement Funds

by Tony Romeo

HARRISBURG (CBS) -- Pennsylvania's auditor general says his office will review the management of two big retirement funds: one for state employees, the other for teachers.

Auditor General Eugene DePasquale says one of the things his office will examine is the use of outside investment advisers by the State Employees Retirement System and the Public School Employees Retirement System.

The auditor general says those advisers can't even beat conservative stock index funds.

"Outside fund managers that aren't even coming close to equalizing the stock market. Which begs the question: Why are we paying these people? And what are we getting for our money?" he said.

DePasquale's announcement of the audit came just days after word that former state Treasurer Barbara Hafer was indicted on charges of making false statements to federal investigators probing pay-to-play activities in Pennsylvania state government, but DePasquale says his audit was already in the works before charges against Hafer were announced.