PERA Drops 2008 Money Manager Incentive Pay

April 2, 2009 ( - The executive director of Colorado's largest state pension fund has called off 2008 bonuses for the fund's investment managers in light of the public furor over the bonuses paid at insurance giant AIG and the slumping economy.

An Associated Press news report saidColorado Public Employees Retirement Association’s (PERA) investment managers got about $1.3 million in bonuses that were being paid for work in 2006 and 2007.

Meredith Williams, PERA executive director said Wednesday said he has canceled bonuses for 2008, due to be paid this year, even though some investment managers may have earned them. He said he made the move because of the fund’s lagging performance.

Williams said assets managed by PERA dropped from $41.4 billion on December 31, 2007, to $30 billion on November 30.

Bonuses paid to PERA’s money managers totaled $540,000 for 2006 and $722,000 for 2007. The incentives were limited to a maximum of 35% of base salaries.

Williams said PERA had written agreements to pay bonuses for previous years when the market was booming.