Act 2094, passed by both the state House and Senate and penned into law by Governor Mike Huckabee, requires “each board member who receives gifts or other compensation, including, but not limited to, trips and meals, from current or potential investment advisors or managers of the policemen’s pension and relief fund shall prepare an annual statement listing each item received, the estimated value of each item, and from whom each item was received,” according to the Russelville (Arkansas) Courier. The annual statements will also be backed up by sworn affidavits attesting to the truth of each pension board member’s disclosures.
In light of the new fee cap, advisors now will be able to collect no more than 3% annually of the first $500,000 of plan assets, plus no more than 2% annually of the next $500,000 of plan assets, plus no more than 1% annually of the plan assets more than $1 million, according to the news report.
David Clark, the executive director of the Arkansas Fire and Police Pension Review Board, said members of some local pension boards receive gifts and free trips from investment counselors in order to encourage the board members to retain their services. The gift disclosures will be reviewed by the state board because they are required to be included with annual reports local boards must submit, he said.
« SEC Adds Fund Advisor Revelation Requirement