Local Taxpayers On the Hook

Think tank recommends changes to local public pension funds

The institute estimates that local retirement systems have forfeited about $2.9 billion over the past 30 years

Image: Thinkstock
Image: Thinkstock

BOSTON (AP) — Massachusetts should set a five-year deadline for 102 public pension systems to transfer their assets to the Pension Reserves Investment Management Board.

That’s the conclusion of a policy brief released by the Pioneer Institute, a conservative-leaning think tank.

The Pension Reserves Investment Management Board — also known at PRIM — already manages both the Massachusetts State Employee Retirement System and the Massachusetts Teachers Retirement System.

The Pioneer Institute says PRIM offers better asset allocation and cash management, lower investment fees and other costs, and more attractive investment options because of its size and market power.

The institute estimates that local retirement systems have forfeited about $2.9 billion over the past 30 years by not investing with PRIM and that ultimately local taxpayers are on the hook for the pension benefits.

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