Pay is always a flashpoint at public pension plans. That’s taxpayers’ money, after all, going to compensate the people looking after our pensions – and cash that is paid to pension managers isn’t there for pensioners.
It is a lot of money, by any measure. Pension plans compete for talent with private equity firms, mutual funds, endowments, family offices, investment banks and numerous other places where people with good financial brains can find work. So setting compensation at something close to market rates is going to lead to paycheques that would be largely unimaginable for most of us, never mind the people actually receiving a monthly pension cheque.