Criminally Bad Management of Police & Fire Pension

[JFman00]

About one half of the woefully underfunded shortfall at the Jacksonville Police and Fire Pension Fund is due in part to poor investment choices, mismanagement and the pension fund board's inattention to such things as how much it paid an army of advisers, according to a preliminary forensic investigation of the ailing fund.

"While we have estimated Fund underperformance losses of approximately $370 million, we simply do not know for certain how well, or badly, the Fund's investments have performed over the decades -- and, based upon the information we were provided, apparently neither does the Board nor anyone else currently involved with the Fund."

[edjax]

I hope they nail Keene and he spends the rest of his  days in jail when this is all said and done.

[JFman00]

Why in the world did the board of a multi-billion dollar pension fund stick with someone with no appreciable finance training nor experience as administrator/executive director for so long? I'm told I'm quite a credential snob, but two associates from FSCJ, a (online?) B.S. in "Workforce Education and Development", and a lifetime of employment with JSO hardly seem sufficient for the job.

[Non-RedNeck Westsider]

I hope they nail Keene and he spends the rest of his  days in jail when this is all said and done.

Seriously?!?

This dude packed his own parachute;  There's no worry from his end.  Hell, I'd actually be shocked if there's not a clause in his new part-time contract that will not only absolve him from everything that had happened but guarantees him his money for the next few years regardless of what happens in the future.

[brainstormer]

A sad, yet not surprising day for Jacksonville. I'm with Gulliford. So much blame to go around. Many past leaders failed our city. Keane should go to jail and get all of his benefits stripped from him. What a piece of shit. Really disappointed in our police and fire departments. They should be ashamed and if the officers and firefighters don't stand up and demand resignations of the people they entrusted in their organization, then they are just as guilty.

[The_Choose_1]

A sad, yet not surprising day for Jacksonville. I'm with Gulliford. So much blame to go around. Many past leaders failed our city. Keane should go to jail and get all of his benefits stripped from him. What a piece of shit. Really disappointed in our police and fire departments. They should be ashamed and if the officers and firefighters don't stand up and demand resignations of the people they entrusted in their organization, then they are just as guilty.

Well put brainstormer I hope this does lead Keane and others into a court of law, and then jail.

[spuwho]

Legally going after the board members and ED will only bring about a settlement with the insurance company who bonds them.

Another suit will come with the accounting firm for signing off on bogus numbers. That usually ends up as a settlement as well.

I gotta say we have some real upstanding people in JFRD and JSO.

Allied Veterans and now the Pension Fund.

With the recent JEA Board debacle, maybe its time to seriously drain the swamp.

Who's next?

[Noone]

It's RICO baby!

[Captain Zissou]

This isn't a surprise. I hope it makes national news.  The media will make this guy's life worse than anything short of criminal prosecution (which he won't get).  To think that he had the gall to set up his own golden parachute while he knew he had performed his job poorly for years. This guy is trash.

[RattlerGator]

Although Stephen may take issue, this is an all-too-familiar result where unionized public sector entities are involved.

Why in the world did the board of a multi-billion dollar pension fund stick with someone with no appreciable finance training nor experience as administrator/executive director for so long? I'm told I'm quite a credential snob, but two associates from FSCJ, a (online?) B.S. in "Workforce Education and Development", and a lifetime of employment with JSO hardly seem sufficient for the job.

Why?

The Union, that's why. Need I remind you:

1. He was an active member of the Fraternal Order of Police (Lodge 30)

2. Served as Business Agent and Executive Board member of the Jacksonville Association of Firefighters #122

3. Served as a member and Chairman of the Pension Advisory Committee

4. Was a Member of the Board of Pension Administration

5. He was elected to the first Police and Fire Pension Fund Board of Trustees when the Fund became independent of the City

6. He served as an Executive Committee member of the National Conference on Public Employee Retirement Systems

The man is a walking, talking example of how the incentives get completely screwed up with these public sector unions, especially with teachers, police and firefighters -- folks who can politicize that which should not be politicized and scare the public in the process.

Clearly, we should not have public sector unions. Virginia and North Carolina ban them; we should follow that lead.

http://object.cato.org/sites/cato.org/files/pubs/pdf/tbb_61.pdf

To put citizens and taxpayers back in control of their governments, collective bargaining and forced union dues should be outlawed in the public sector. Public employees should be free to join worker associations, but they should not be given a special legal status and handed extra power to block desperately needed fiscal reforms.

The time for reform is now.

[Adam White]

Although Stephen may take issue, this is an all-too-familiar result where unionized public sector entities are involved.

Why in the world did the board of a multi-billion dollar pension fund stick with someone with no appreciable finance training nor experience as administrator/executive director for so long? I'm told I'm quite a credential snob, but two associates from FSCJ, a (online?) B.S. in "Workforce Education and Development", and a lifetime of employment with JSO hardly seem sufficient for the job.

Why?

The Union, that's why. Need I remind you:

1. He was an active member of the Fraternal Order of Police (Lodge 30)

2. Served as Business Agent and Executive Board member of the Jacksonville Association of Firefighters #122

3. Served as a member and Chairman of the Pension Advisory Committee

4. Was a Member of the Board of Pension Administration

5. He was elected to the first Police and Fire Pension Fund Board of Trustees when the Fund became independent of the City

6. He served as an Executive Committee member of the National Conference on Public Employee Retirement Systems

The man is a walking, talking example of how the incentives get completely screwed up with these public sector unions, especially with teachers, police and firefighters -- folks who can politicize that which should not be politicized and scare the public in the process.

Clearly, we should not have public sector unions. Virginia and North Carolina ban them; we should follow that lead.

http://object.cato.org/sites/cato.org/files/pubs/pdf/tbb_61.pdf

To put citizens and taxpayers back in control of their governments, collective bargaining and forced union dues should be outlawed in the public sector. Public employees should be free to join worker associations, but they should not be given a special legal status and handed extra power to block desperately needed fiscal reforms.

The time for reform is now.

That's completely illogical. This seems more an issue of patronage than of union membership.

[TheCat]

From the report, regarding traveling to pension conferences

"In our opinion, the likelihood that public pension board members and
staff who lack investment experience will learn anything meaningful
regarding pension investing through travel to exotic locations is remote."

p.86-87

[TheCat]

More on travel:

"Most recently, the Fund Administrator's travel, including 31 trips since
2010—to destinations including Scotland and Canada and staying at
hotels such as Caesars Palace, Hotel Frontenac, Four Seasons, and
Trump Tower—has emerged as an issue in connection with the
Forensic Investigation of the Jacksonville Police and Fire Pension Fund
estimated almost $475,000 he has already and is expected to collect for
unused vacation days in the past five fiscal years."

an average of 6.2 trips a year. 

[Noone]

Not to worry.
The  11/2/15 Ethics Commission meeting agenda item 7 Discussion of PUBLIC RECORDS ISSUES and PROPOSED LEGISLATION is a top news story that is breaking in MJ- Marvelous Jacksonville. Support Ethics Commission member James Young for the retention of jail time in the drafting of this NEW legislation.
Visit Jacksonville!

[TheCat]

From the report:

Keane is the first and — to date — only executive director of the city's Police and
Fire Pension Fund. He does not hold an advanced degree in finance nor a related
academic field.

Keane, who never advanced up the ranks in the fire department, earned a top salary
of $56,000 a year as a firefighter.

Most unusual, in addition to his role as Administrator of the Fund, Mr.
Keane has been the lead negotiator for police and fire unions in pension
reform negotiations.

"This is the only city in Florida where the city negotiated benefits with the pension
fund as opposed to the union," attorney Bob Dees said.

According to former City General Counsel James C. Rinaman Jr.:

"There is no legal authority for the Fund to collectively bargain with the city for
pension benefits on behalf of the police and fire unions. There is an inherent conflict
of interest for the pension trustees to bargain for pension benefits.

Their duties are limited to administering and managing the pension funds, and negotiating for new
or increased benefits conflicts with performance of that duty."

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