L.A. Pension Fund to Require Disclosure of Political Donations

July 24, 2009 (PLANSPONSOR.com) - A Los Angeles pension fund has voted to require any company seeking business with its board to disclose campaign contributions made to city political candidates.

The Los Angeles Times reports that on a 6-0 vote, the Fire and Police Pensions board approved a policy demanding quarterly statements that spell out the political donations made by such companies, as well as their paid representatives, their employees, and their employees’ family members. The policy will go into effect immediately, said Mike Perez, the pension agency’s general manager, according to the L.A. Times.

The action is in response to investigations into pension systems in New York and elsewhere that reached to the Fire and Police Pensions fund (see SEC Pension Probe Extended to L.A. Fund ). Board members Sean Harrigan and Elliott Broidy resigned after both had received inquiries from the U.S. Securities and Exchange Commission (see Harrigan Resigns from LA Pension Board ).

Following those board member resignations, two members of the Los Angeles City Council called for a reduction in Mayor Antonio Villaraigosa’s power to pick pension board members (see Council Wants Mayor to Have Less Control over L.A. Pension Boards ). Villaraigosa nominates five of nine members on the Fire and Police Pensions board, and four of seven members on the city employees’ retirement board.