(Bloomberg) -- To ease Pennsylvania’s pension obligation, GovernorTom Wolf isn’t targeting public workers, the focus in neighboringNew Jersey and around the country. He’s eyeing payments to WallStreet.
The first-term Democrat is calling for Pennsylvania’s twopension systems to reduce investment-manager fees that are higherthan the average U.S. public plan. He’s also counting on WallStreet banks to market bonds the state would use to bolster one ofthe funds.
Also read: How3 public pensions got their houses in order
As retirement costs consume a growing share ofmunicipal budgets, pension boards are scrutinizing payments tomoney managers. California PublicEmployees’ Retirement System plans to liquidate itshedge-fund program, while Pennsylvania’s Montgomery County movedmost of its holdings to cheaper, passively managed funds, whichtrack indexes. Wolf wants to adopt lower-cost approaches that maysave $200 million annually.
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