Dozens of federal lawmakers this week requested the Government Accountability Office (GAO) investigate the finances of the Central States Pension Fund.
The fund has 400,000 members across the country and recently attempted to cut its members’ benefits in a bid to remain solvent.
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Ten Democrats in the Senate and 41 in the House requested on June 20 that the Government Accountability Office review the Central States, Southeast and Southwest Areas Pension Fund’s investment decisions going back to 1982, when the fund came under the supervision of a court-ordered consent decree.
The requests seek to determine if there was any wrongdoing that led to the fund’s severe financial woes. The fund has projected it will be insolvent in 10 years or less.
Thomas C. Nyhan, the executive director and general counsel of the Central States fund, told Bloomberg BNA June 20 that, “While we see no reason for the investigation, we welcome it.”
Nyhan said the fund was “confident the GAO will conclude there was absolutely no wrongdoing at any time in connection with the Fund’s investment practices and finally put to rest all of this groundless speculation. We will cooperate fully in any GAO review.”
He said that every year the fund “undergoes a full scope audit by an independent auditing firm, and files exhaustive, public financial reports with the U.S. Department of Labor.”
The GAO is likely to agree to investigate.