Minnesota Center for Fiscal Excellence Predicts State Pension Investigation Finds "Bupkis." State Officials Panic.

MCFE told teachers forensic investigation of state pension was "a waste of money" at the very same moment state officials were panicking.

“Our prediction right now is that this is going to turn up absolute bupkis, and that teachers contributing to this fund are wasting their money,” said Minnesota Center for Fiscal Excellence.

In March of this year, the Minnesota Center for Fiscal Excellence (formerly known as the Minnesota Taxpayers Association) posted a blog entitled Minnesota Teachers Fundraise for Forensic Audit of State Pension System which stated the following:

“The push by Minnesota teachers to secure an earlier retirement age with full benefits has clearly taken an interesting and rather unusual turn.”

The blog noted:

“Minnesota educators are concerned that the Teacher Retirement Association (TRA), the body that manages the statewide educator pension system, has mishandled employee contributions. In response, educators have set up a GoFundMe account, MN TRA Forensic Audit Fundraiser, to crowdsource the funds to commission an expert forensic investigation of TRA.”

On its website, the MCFE quotes others saying it is “one of the most influential organizations in state and local public finance.  It has a reputation for performing honest, unbiased research and its commitment to sound tax policy is unrivaled."

“Transparency” and “accountability” in government spending are included in its guiding principles. Educating and informing Minnesotans about sound fiscal policy and providing objective, non-partisan research are part of its mission.

So what honest, objective, non-partisan, unbiased pension advice did MCFE gratuitously offer Minnesota teachers before the expert forensic investigation they commissioned into their state pension even began?

So, what honest, objective, non-partisan, unbiased pension insights did MCFE gratuitously offer Minnesota teachers before the expert forensic investigation they commissioned into their state pension even began?

“Our prediction right now is that this is going to turn up absolute bupkis, and that teachers contributing to this fund are wasting their money.  

MCFE: Our prediction right now is that this is going to turn up absolute bupkis, and that teachers contributing to this fund are wasting their money.  

Not because we don’t have misgivings about public pension policy in this state, but the idea that state pension asset management is a quagmire of inexperience, excessive and hidden fees, conflicts of interest, political shenanigans, and general asset management malfeasance – the types of things that seem to be this attorney’s specialty --is ridiculous. 

MCFE: The idea that state pension asset management is a quagmire of inexperience, excessive and hidden fees, conflicts of interest, political shenanigans, and general asset management malfeasance – the types of things that seem to be this attorney’s specialty --is ridiculous. 

… the idea of any untoward behavior by the State Board of Investment or constitutional officers is preposterous.”

MCFE: the idea of any untoward behavior by the State Board of Investment or constitutional officers is preposterous. 

Thankfully, the teachers were undeterred by MCFE predictions, the GoFundMe project goal was reached and the expert investigation is nearing completion.

As we have pointed out earlier, public records reveal at the very same moment that MCFE was very publicly predicting the forensic investigation of the state pension would “turn up bupkis,” state officials were panicking.

At the very same moment MCFE was very publicly predicting the forensic investigation of the state pension would “turn up bupkis,” state officials were panicking.

TRA’s Executive Director warned state officials at that time: “As trustees of the TRA Board, it is important for you to be aware of and concerned about risks to the agency and the fund, and this situation poses many serious risks. Specifically, TRA’s reputation as a trusted government agency is going to be questioned.”

Further, state officials, including Governor Walz, public pension boards and staff, representatives of State or Legislative Auditors, Attorneys General and legislators were joining together with industry representatives to undermine the teacher-funded investigation and thwart public scrutiny of public monies—transparency in government spending which MCFE supposedly supports.

Why anyone at MCFE felt compelled to offer a prediction about complex pension investment management and legal matters—whilst fundraising to ensure transparency was still ongoing—remains a mystery.

Why anyone at MCFE felt compelled to offer a prediction about complex pension investment management and legal matters—whilst fundraising to ensure transparency was still ongoing—remains a mystery.