Home > News > Newsmakers > CalPERS Staff Pushes for Quick Replacement of Infrastructure Consultant StepStone
Newsmakers

CalPERS Staff Pushes for Quick Replacement of Infrastructure Consultant StepStone

Former infrastructure consultant, real estate consultant named as potential immediate replacements.

By Chris Butera

Following the August 11 resignation of its infrastructure consultant, StepStone Group, the California Public Employees’ Retirement System (CalPERS) investment committee may be on the verge of hiring a new consultant as early as its September 18 meeting, according to the meeting’s agenda materials.

It is unclear why StepStone split from the $333 billion CalPERS, which currently has $3.5 billion in infrastructure investments. StepStone was under a five-year contract, which started March 1, 2015, and would not expire until February 29, 2020. The resignation is effective September 30.

In the wake of StepStone’s withdrawal, CalPERS’ investment staff is pressuring the investment committee to hire a new consultant to start on October 1.

According to the agenda document, CalPERS is looking at two potential replacements: Meketa Investment Group or Pension Consulting Alliance (PCA).  Both are familiar with the  committee; PCA has been serving as the committee’s real estate consultant for seven years, while Meketa served as the committee’s infrastructure consultant from 2010 to 2014.

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“Engaging Meketa or PCA through a new contract and/or letter of engagement, or using the existing Real Estate Consultant contract with PCA, would allow staff to expeditiously engage either vendor, avoid a lapse in services to the Committee, and provide continuity of services to the Committee from a known contractor,” the agenda letter reads. “Only Meketa and PCA have the resources, experience, and infrastructure expertise to assume the responsibilities without a disruption of services to the Committee.”

StepStone declined comment. CalPERS could not be reached for comment.

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Home > News > Newsmakers > TPR to Prosecute Firm for Not Providing Pensions
Newsmakers

TPR to Prosecute Firm for Not Providing Pensions

Manchester bus company and managing director could face unlimited fine.

By Michael Katz

The UK’s The Pensions Regulator (TPR) said it is prosecuting Stotts Tours (Oldham) Limited, a Manchester-based bus company, as well as its managing director Alan Stott, for deliberately failing to provide its employees with a workplace pension.

It is the first time that TPR has launched prosecutions for this offense.

The TPR has accused Stotts Tours (Oldham) Limited of failing to comply with the law on automatic enrollment for 36 members of its staff. “Stott is accused of either consenting or conniving in the bus company’s offense, or allowing the offense to be committed by neglect,” said the TPR in a statement.

Stotts Tours and Stott have been summoned to appear at Brighton Magistrates’ Court on Oct. 4, where they will face eight charges of willfully failing to comply with the company’s duties under the Pensions Act 2008. Under section 45 of the Pensions Act 2008, “the employer must make prescribed arrangements by which the jobholder becomes an active member of an automatic enrollment scheme with effect from the automatic enrollment date.”

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According to the Act, when an offense under section 45 is committed by a company with the “consent or connivance of one of its directors, or is attributable to the director’s neglect,” the director is also considered guilty of the offense.

The offenses can be tried in a crown court or in a magistrates’ court. In a crown court, the maximum sentence is two years’ imprisonment, and in a magistrates’ court, the maximum sentence is an unlimited fine.

The TPR has been cracking down on companies and individuals it says have shirked their responsibilities toward their employees’ pensions. Late last month, it said it would prosecute Dominic Chappell for failing to provide information and documents it requested during its investigation into the sale of BHS. It has also begun publishing the names of pension plan trustees who have been fined for failing to complete plan returns or annual chair’s statements, and has begun carrying out spot checks to ensure employers are complying with their automatic enrollment duties.

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