Philadelphia Pension Plan Seeks a New CIO

The City of Philadelphia is seeking a new CIO for its pension plan to replace former chief Sumit Handa.

According to a job posting on LinkedIn, the CIO is tasked with the “creation and maintenance of an actuarially sound retirement system providing benefits to all city employees.” The compensation for the position hasn’t been announced.

The steward of the city’s $4.5 billion defined benefit and $800 million deferred compensation plans will be appointed by the board of pension and retirements, the city said. The new appointee will also serve as the “primary liaison to the board and to any investment consultants.”

Specifically, the CIO will be responsible for developing, recommending, and implementing the overall investment strategy, as well as reviewing asset allocation decisions “on an ongoing basis to ensure optimal performance.”

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The City of Philadelphia emphasized the CIO’s relationship with the board and said he or she will present investment recommendations and assist in developing policies consistent with fiduciary standards and state and federal regulations.

The position also requires conducting direct manager and consultant searches, thorough due diligence, and monitoring of all external managers.

In addition, the CIO will be asked to research and recommend “innovative investment management that can increase the return, reduce risk, or reduce the cost of the plan.”

According to the job description, the ideal candidate should hold advanced degrees in finance, accounting, or related fields, and certifications such as the Chartered Financial Analyst are highly preferred.

Applicants should also have at least eight years of extensive investment experience, including four years working in a public or corporate pension plans, endowments, foundations, or consulting firms. Those with experience in an investment organization should have worked on direct investments across assets and investment policy development.

Handa submitted his resignation in January after serving three-and-a-half years as CIO. Prior to that, he spent six years as a portfolio manager for New York-based hedge fund DKR Capital.

According to someone with knowledge of the situation, he left the Philadelphia pension plan for a CIO position at a major financial institution.

Interested parties should send resumes, cover letters, and salary requirements to hr.recruitment@phila.gov. So far, 77 people have applied, according to LinkedIn.

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China’s government will professionalize the investment scheme for the nation’s pension plan in the next five years, according to officials.

To address the pension fund’s low returns and an aging population, the minister of human resources and social security said the government will propose to diversify the fund’s investments—including buying equities for the first time—and have it be “run by professional investment agencies on market rules.”

“The pension fund faces tremendous pressure in terms of breaking even in future,” Yin Weimin continued. “The future investments of the fund will be diversified to avoid putting all the eggs in one basket.”

Under the current rules, China’s pension fund can only be invested in treasury bonds and bank deposits, leading to an annualized yield of around 2% over the past few years, according to the the China Radio International.

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The government said the pension fund has been losing money as low returns fell below the rate of inflation.

Yin said the new investment plan would include allocations to not only “projects with good prospects,” but also to the stock market.

The Chinese government also expressed concerns about the country’s rapidly aging population and said it plans to increase the required retirement age.

Under today’s laws, Chinese men can retire at 60 years old, while women who work in factories can retire as early as 50. Female public-sector workers are permitted to retire at 55.

Yin said the government would unveil its detailed plan for raising the retirement age in 2017 after making a public consultation next year. The changes will not take effect until five years after the announcement.

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