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And even in a city the size of New York, it can be hard to find investments that are sufficiently safe, have a high enough return, help the city economically and are not being done by the private sector, said Jon Lukomnik, who was deputy comptroller in charge of pension management and is now managing partner of Sinclair Capital.
Corporate managers who duck responsibility for pension management by making easy, conventional or faddish decisions are making an expensive mistake.
Keith P. Ambachtsheer, director of the Rotman International Center for Pension Management at the University of Toronto, said that when cities or states replaced old-fashioned, inefficient, often politicized pension management plans with ones that call for independent, professional managers who oversee large plans, that generally improves their investment returns by 1 percent to 2 percent a year.
"We're overhauling an antiquated pension management system that has needed restructuring for generations," Mr. Bloomberg said.
Two years later, that concern has not been resolved, Ms. Ruell and several other pension management workers say.
Royal Bank of Canada, the country's largest bank, confirmed that its pension management unit, RT Capital Management Inc., was under investigation.
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Hermes Pensions Management, which manages pension funds for the BT Group, agreed to buy the General Electric Company's 50percentt stake in MEPC Ltd., a property investment company.
CalPERS' previous investment chief, Mark Anson, left in Janaury to lead London's Hermes Pensions Management.
As chief executive of Hermes Pensions Management, one of the largest pension funds in Britain, between 1993 and 2001, he played a leading role in developing institutional shareholder activism.
The BJP and Congress should in theory be able to agree on changes that produce big benefits, such as cutting diesel subsidies, introducing a goods and services tax, and lifting caps for foreign investors in sectors from aviation to pensions management.
"There is a kind of über-cronyism at work," explains Michelle Edkins, director of corporate governance at Hermes Pensions Management in London.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com