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Lawrence County Retirement Board votes to replace Korn Ferry with Foster & Foster for actuarial work
Summary
At a May 20 special meeting the Lawrence County Retirement Board terminated its contract with Korn Ferry and approved hiring Foster & Foster to complete the county employees' actuarial report; the move, board members said, responds to service delays that threatened timely audit completion.
The Lawrence County Retirement Board voted on May 20 to terminate its contract with Korn Ferry and to enter a new contract with Foster & Foster for actuarial services for the county employees retirement fund.
The change follows complaints from board members about recent turnover and communication failures at Korn Ferry that delayed the annual actuarial report auditors need to complete the county’s financial statements. David, a member of the retirement board, said the auditors “need that report to complete their audit” and that work was expected from the actuary within “probably 2 to 3 weeks.”
Sarah Wilson, the board’s investment adviser, told the board that Foster & Foster is a national actuarial firm with an office in Allentown and experience working with other counties. “The actuarial needs to have decision today so you can move forward and get your report done,” Wilson said. She also offered to run a competitive request for proposals in the future if the board wished to revisit the vendor.
The board adopted two brief resolutions. Resolution 202025-1 directs termination of the Korn Ferry contract “effective upon notification and compliance with the current contract.” A second resolution authorizes entering a contract with Foster & Foster to provide actuarial services “effective upon submission of all applicable paperwork.” During debate a board member said Foster & Foster agreed to charge the county the same fee as Korn Ferry for the first 12 months.
Board members noted the change should not affect the health of the pension fund. Wilson said the actuarial engagement is a service to the fund and “no, nothing negative impact at all.” Board members also told retirees and active employees the change was intended to restore timely reporting to auditors and preserve the schedule for employer contribution calculations.
A member of the public who identified himself as a former retirement-board member asked about the fund’s assumed investment return; the assembled board confirmed the current actuarial assumption is 6.75 percent.
The board said it had first discussed the matter in an executive session on May 2 and moved because of the immediacy of the auditors’ need. The board expects Foster & Foster to prepare the actuarial report needed for the auditors and to present routine fiscal updates at the board’s next quarterly meeting on June 3.
Formal actions and roll-call votes taken at the May 20 meeting are recorded below.
