Administration September 11, 2006

MT PERS Rescinds Executive Director Contract

November 21, 2005 (PLANSPONSOR.com) - Montana's Public Employees' Retirement System (PERS) Board voted unanimously to rescind its contract to hire Terry Tiechrow as its new executive director.
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The Associated Press reports that the action came after Governor Brian Schweitzer filed a lawsuit against the board, alleging Tiechrow’s hiring was illegal because board members made the decision behind closed doors.   Schweitzer had been critical of the board’s decision to hire Tiechrow, a former president of the board.

Board members were warned that they could now face a lawsuit by Tiechrow for breach of contract.

Reports from actuaries show that the PERS had a potential shortfall of $522.6 million on June 30, an increase of 15.3% over last year (See  Montana Pension Funds Show $1.4B Funding Shortfall ).

“It seems to me that Mr. Ewer and Governor Schweitzer are more concerned with negative press than fixing the problems of the state of Montana,” board member Jay Klawon said.

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