Fairfield Fires Pension Consultants Following Madoff Loss

January 12, 2009 (PLANSPONSOR.com) - Following reports of a $42 million Madoff-related loss, the town of Fairfield Connecticut's joint pension boards voted to end a contract with New England Pension Consultants.

According to the Connecticut Post, Fiscal Officer Paul Hiller and First Seletman Kenneth Flatto declined to comment on the specific reasons for the contract’s termination.

An article in the Post last week said the Madoff – related investment loss will force officials to add an additional pension contribution of approximately $500,000 to their already budgeted $900,000 (see Town Pension’s Madoff Hit Prompts Additional $500K Contribution ).

It was also reported that a representative of New England Pension Consultants issued an apology to Flatto and other officials after he was quoted as saying in a published report that he recommended Fairfield reduce its investments in a feeder fund linked to disgraced investor Bernard Madoff. Flatto complained that the consultant should never be discussing its specific work with Fairfield without prior permission from the town.

The joint pension boards also authorized Town Attorney Richard Saxl to hire outside counsel to “investigate and pursue any and all claims to recover Madoff related losses sustained by the funds,” the Connecticut Post said.