John Norwood, the Democrat who’s running for state treasurer, is calling for changes in oversight of the Iowa Public Employees Retirement System, known as IPERS.
Norwood’s remarks come after the state-run pension system’s CEO resigned on May 1 and a top deputy was fired. Both were under investigation for alleged misconduct. “IPERS is not just another government program,” Norwood said during a news conference earlier this afternoon. “This quasi-government agency represents one in eight Iowans and is foundational and their families across our state.”
Norwood told reporters he’s “not going to speculate” about what the allegations may have been and he’s “relieved” by statements indicating the solvency of IPERS is not in doubt. He is, though, calling on the current leadership of IPERS and its board of directors to be more forthcoming about what’s going on. A former employee who’s suing the state says he’s a whistleblower who was fired because top IPERS officials overstated the performance of investments.
“This situation raises serious questions about transparency, governance, internal controls and whether risks inside the system were being properly disclosed and responsibly managed,” Norwood said.
Norwood, if he’s electd treasurer, said he’ll push for the state to hire an independent consulting firm to review internal operations of the system, to ensure no single individual has excessive unchecked authority over the fund. Under current law, the governor appoints the CEO of IPERS. Norwood said it may be time for the IPERS board to have hiring and firing authority instead.
The state treasurer is one of seven voting members of the ipers board. Last week, State Treasurer Roby Smith released a statement, saying his “focus remains on maintaining the long-term strength of the system for current and future retirees.” Smith, a Republican, is seeking a second term as state treasurer.