'Gold Mine' CA Pension Chief Quits

(January 12, 2011) — In an unexpected move, pension administrator Tim Thonis resigned earlier this month.

Media reports have tied Thonis’ departure to a salary deadlock, but the pension administrator confirmed in a phone interview with aiCIO that previous reports have “got it all wrong.” “It’s not about salary,” Thonis told aiCIO. “My reason to leave was because of a governance issue,” he said, indicating that he has chosen not to comment further to the media.

Speculation persists that Thonis’ regulation is a direct result of years of deadlock over his salary base of about $170,000 a year. Retirement board member Robert Hansen told a local newspaper that the reason for the departure is simply a “timing issue.” “It’s unfortunate,” board Chairman Tracy Towner, a senior district attorney investigator, told the Ventura County Star. “Here’s a guy who’s a gold mine who we’ve lost.”

In a 6-3 vote, the Ventura County Retirement Board had declined to make changes that could have resulted in higher salaries for top officials at the more than $3 billion fund. Over the past two years, the Retirement Board has recommended raising Thonis’ salary, but action had been put off by County Executive Officer Marty Robinson and the Board of Supervisors. Thonis identified the attempt to raise his salary as one of fairness, as he was promised certain assurances about compensation when he was hired four years ago.

Industry experts note that in comparison to other funds across the state and around the country, Ventura County’s fund is run inexpensively. The departure of Thonis, who ran a roughly $3 billion fund skillfully and singlehandedly, may mark the tension at public pension funds over pay, as schemes struggle to retain their best talent. Thonis, responsible for managing 20 employees and for tracking investments for the retirement fund, which serves the county’s 5,200 retired workers and more than 15,000 active employees, informed the board that his last day would be January 21, three days prior to the next board meeting.