You did cite specifically in your report those professional service providers that provide auditing, actuarial, investment consulting, and medical consulting services for the system. These four firms are retained by the Board of Trustees and serve at the pleasure of the Board. The Board has delegated to the Executive Secretary the ability to negotiate fees with these firms and we are satisfied that the fees that have been negotiated are not only competitive but substantially below those fees being paid by other retirement systems of similar size. We feel that as long as we are confident and satisfied with the services being provided and the current fee arrangement with these firms, that there would be little, if any, advantage in requesting proposals from other firms for these services. In fact, requesting proposals from other firms may, in fact, cause the cost of current services to go up considerably.
This report is intended for the information of the system’s management and other applicable government officials. However, this report is a matter of public record and its distribution is not limited.