"Top investment staffers at the Georgia Teachers Retirement System received pay increases of up to $108,000 last fiscal year even though the fund they manage lost money and most state employees went without raises amid the state’s fiscal crisis."
The staffers earned “incentive pay” because, while the system’s fund lost 13 percent in fiscal 2009 and 3 percent in fiscal 2008, it beat the market averages. The fund has since recovered part of its losses, and retirement system officials say such “incentive pay” is common in the public and private sectors.
The staffers earned “incentive pay” because, while the system’s fund lost 13 percent in fiscal 2009 and 3 percent in fiscal 2008, it beat the market averages. The fund has since recovered part of its losses, and retirement system officials say such “incentive pay” is common in the public and private sectors.
Some state retirement systems around the country have done away with bonuses under political pressure in recent years. And retirees and a teacher group say the incentives suggest system officials are out-of-touch at a time when educators and other state employees are going without raises and being furloughed.
“This issue reminds me of Wall Street financial investors giving themselves outlandish bonuses while the people they are basically working for suffer,” said Carol Brown, a Kennesaw retiree who taught for 30 years in Marietta andCherokee County schools.
In total, 28 investment staffers received $435,000 in incentive pay in fiscal 2009, which ended June 30. The top investment staffers are among the best-paid employees in state government.