MONTGOMERY, Ala. (AP) - Alabama’s state pension fund is paying a total of $370,000 in incentive bonuses to 14 employees.
The bonuses were approved this month by board directors for the 2015 fiscal year and range from $3,371 to $51,199.
The head of the Retirement Systems of Alabama, David Bronner, told Al.com (https://bit.ly/1NLEQff ) the bonuses will help him keep strong employees in a competitive profession.
“I think we’ve got probably our best staff we’ve ever had,” Bronner said.
The pension system earned a 1 percent return on its $32 billion in investments for the year that ended Sept. 30. That’s below its long-range target of 8 percent. But Bronner says the bonuses are based on performance relative to the markets, not the overall target.
“Each person is graded totally in their area on numbers,” Bronner said. “Numbers only, no personality, no nothing else.”
The incentive program is “fair and reasonable,” said state Treasurer Young Boozer.
“Incentive compensation is an essential component of overall compensation for the investment staff,” Boozer said in an email. “It allows RSA to attract and to retain personnel with the expertise required to manage its portfolios.”
A legislative committee is studying the state pension system and might recommend changes in 2016.
Rep. Jim Patterson, R-Meridianville, said incentive pay sounds like a good policy, but he questions the long term sustainability of the RSA’s earnings over the past 20 years.
The Pew Charitable Trusts is gathering information for the legislative committee and reported that the RSA’s liabilities have grown faster than its assets since 2001.
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