Arizona Pension Fires Top Executive for Sexual Harassment

The $10 billion Arizona Public Safety Personnel Retirement System (PSPRS) has fired its administrator for sexual harassment.

In “a decision we could not in good conscience avoid,” PSPRS board Chairman William Buividas said in a statement, the system’s board voted 8-0 to remove Jared Smout based on the results of an investigation launched by the Arizona Department of Administration.

Smout had been on paid administrative leave since April 16, and Bret Parke has been the acting administrator since then.

“To be blunt, the behavior described in the Arizona Department of Administration investigation is in no way acceptable from any employee of PSPRS, let alone the system’s top executive,” said Buividas. “We will not tolerate inappropriate workplace behavior. And, as we did with this complaint, all such allegations will be taken seriously and investigated thoroughly.”

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Elizabeth Alvarado-Thorson, interim director of the Arizona Department of Administration, said in a July 15 letter to Buividas that PSPRS employees alleged Smout engaged in inappropriate physical contact, as well as inappropriate comments, and text messages, and looking at the employees inappropriately.

Smout also allegedly spied on certain employees he was attracted to via video survellience cameras that he watched sometimes for hours a day.

“Mr. Smout clearly engaged in improper and inappropriate behavior and failed to meet the expectations and requirements of his job as the Administrator of PSPRS,” said Alvarado-Thorson in the letter. “The conduct to which Mr. Smout has himself admitted does not even remotely comply with the values of PSPRS and has brought embarrassment and discredit to the state.”

In addition to recommending Smout’s employment as administrator for PSPRS be terminated immediately, Alvarado-Thorson said that Smout should not be employed in any capacity whatsoever with the state of Arizona.

Buividas credited Smout with helping “institute important changes during his tenure at PSPRS,” but added that “the organization we’re aspiring to be must demand more of its leaders than doing good work.”

He said the board and PSPRS leadership already have begun working toward revamping policies and training procedures meant to prevent and address inappropriate behavior and workplace harassment. He also said they are overhauling the system’s policies governing cybersecurity, records management and the handling of human resources complaints.

“The Board of Trustees of the Public Safety Personnel Retirement System stands united in the core principle that the leadership of our organization must be held to the highest possible standards,” said Buividas, “in the same way our communities and employers hold our police officer and fire fighter members to highest possible standards.”

Tags: Arizona, Arizona’s Public Safety Personnel Retirement System, Jared Smout, Pension, Sexual Harassment

The Teacher Retirement System of Texas’s chief investment officer identified some challenges and savings with its plans for a possible new Singapore office during the first day of its two-day board meeting.

Jerry Albright kept his CIO update brief, mostly focusing on the fund’s progress on its “Building the Fleet” strategy. The tactic seeks to boost its internal operations while saving the plan more than $1 billion per year in management fees.

He expressed excitement in the $153 billion fund possibly opening a Singapore branch, which has been dubbed the Teacher Retirement Investment Company of Texas—Asia, or TRICOTA. TRICOTA is an offshoot of its successful London office (TRICOT), which is approaching its fourth year.

“We’ve been on this track a number of years,” he said at the meeting. “We didn’t pull it out of the air.”

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Albright said if the board decides to open the new overseas location, the fund will “essentially try to replicate what we did in London.” He admitted that unlike the quick success it experienced in the UK, it might be a little slower for Texas Teachers to turn a profit in Asia due to cultural differences. “I don’t think it will be easier where we’re going,” he said, adding that the location will ultimately make more money for the retirement plan.

Meanwhile, the CIO noted that the fund can save up to $300,000 per year by relocating a trader from the Austin office. He also quipped that the budget was “basically identical” to that of its London operation, and with boots on the ground in the Asian financial hub, Texas Teachers will also be 14 hours closer to deals in the region.

According to Albright’s presentation, four individuals would be part of the initial Singapore team, which would eventually expand. Materials were given regarding which team members the fund is considering moving to Singapore, but were not publicly disclosed.

The Teacher Retirement System of Texas currently has $22.2 billion, or 14.8%, of its total holdings in Asia-Pacific assets.

In other matters, JP Morgan Chase Chief Executive Officer Jamie Dimon will trade in his suit and tie for cowboy boots and a 10-gallon hat when he visits the retirement system in September for its board meeting, Albright announced.

The banking chief will be giving the $152.5 billion fund his view on the current market conditions and share his insights, which he has done in the past.

Tags: Building The Fleet, Jamie Dimon, Jerry Albright, Pension, Singapore, Texas, Texas Teacher Retirement System (TRS)