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Supervisors question police pension performance and consider issuing RFP for investment managers
Summary
A supervisor flagged sustained underperformance in the police pension fund compared with benchmarks and the fire fund; the board directed staff to research past RFP materials and consider sending a request for proposals to investment managers for alternatives.
Supervisor George (speaker 15) told the board the police pension fund has 'significant underperformance' across multiple measurement periods and underperformed relative to the fire pension fund. He urged a deeper review of whether the township’s investment policy or fund manager is responsible and suggested issuing a request for proposals (RFP) to invite other firms to describe how they would manage the fund.
George said the board had previously approved shifts toward higher equity allocations and that management and policy changes over time complicate the performance picture. He proposed asking managers, including the incumbent, to explain whether they should be retained or replaced and how they would manage the portfolio differently. "The police pension fund is not only underperforming against its own benchmarks, but it's also underperforming against what the fire pension fund is doing," he told the board.
Other supervisors recommended reviewing the existing investment policy (including limits such as holding a set number of individual stocks) and encouraged staff to circulate a draft RFP for board review. The finance manager and new director of finance agreed to research past RFP documents and present them to the board, with the expectation that the board would review and refine the RFP before issuance.
No change in fund manager was made at the meeting; the board agreed to pursue a formal information‑gathering process and return with proposed RFP language and timeline.
