Nether Providence News
NETHER PROVIDENCE — A switch in administrators for the township’s pension funds has provoked opposition, with Democratic commissioners raising the question of whether political patronage played a role in the decision.
As of Aug. 31, the market value of the township’s police pension fund was about $3.2 million; the value of the pension fund for other municipal employees was $1.15 million.
The board had for several months been considering whether to retain Simon Capital, the current administrator, or make a change. More recently, the field had been narrowed to Simon Capital and InR Advisory Services.
State Rep. Thomas Killion, R-168, of Middletown, is a founder and partner in the Media-based InR. He also represents a portion of Nether Providence.
While the commissioners appeared ready to move forward on the matter at a meeting Dec. 1, Commissioner Larry Baker requested additional time to study the firms.
Board President Nate Much agreed, but insisted a final decision would take place at the board’s next meeting on Dec. 8.
When that session rolled around, Baker, a Republican, said he had contacted officials in several towns that use InR for pension services and heard “nothing but praise and satisfaction” regarding the firm.
At the same time, Baker acknowledged that Simon Capital, whose only municipal client is Nether Providence, had done a good job for the township.
“To me, you can’t go wrong with either,” he said.
Commissioner Mike Dougherty, also a Republican, made a motion to hire to InR as the new pension administrator.
As of Aug. 31, the market value of the township’s police pension fund was about $3.2 million; the value of the pension fund for other municipal employees was $1.15 million.
The board had for several months been considering whether to retain Simon Capital, the current administrator, or make a change. More recently, the field had been narrowed to Simon Capital and InR Advisory Services.
State Rep. Thomas Killion, R-168, of Middletown, is a founder and partner in the Media-based InR. He also represents a portion of Nether Providence.
While the commissioners appeared ready to move forward on the matter at a meeting Dec. 1, Commissioner Larry Baker requested additional time to study the firms.
Board President Nate Much agreed, but insisted a final decision would take place at the board’s next meeting on Dec. 8.
When that session rolled around, Baker, a Republican, said he had contacted officials in several towns that use InR for pension services and heard “nothing but praise and satisfaction” regarding the firm.
At the same time, Baker acknowledged that Simon Capital, whose only municipal client is Nether Providence, had done a good job for the township.
“To me, you can’t go wrong with either,” he said.
Commissioner Mike Dougherty, also a Republican, made a motion to hire to InR as the new pension administrator.
That prompted Democrat Frank Noyes to state that he had checked the website of the Securities and Exchange Commission and learned about Killion’s part ownership of InR, though the information is also clearly stated in the legislator’s website bio. He asked Dougherty if he was aware of that.
Dougherty said he knew Killion was affiliated with InR, but didn’t know he was an owner. Much, a fellow Republican, said he was likewise not aware of Killion’s ownership.
“My concern is a concern about perception. To me, it’s something that should have been disclosed,” Noyes said.
Another Democratic board member, Matthew Sullivan, said Simon Capital has done a “great job at less cost” handling the funds, leaving him puzzled about the need for a change.
“This smacks of patronage,” Sullivan said. “I’ve never understood the push to move away from Simon Capital given the fantastic job they’ve done.”
As Noyes went on to assert that most of InR’s municipal clients have come on board since Killion became a state lawmaker, Much banged the gavel, saying, “I’m not going to listen to this anymore.
“When you say there is a smell of impropriety, I take offense to that,” Much added.
He said InR, if selected, would serve at the will of the board and could be removed if the township was not satisfied with its performance.
The board then voted 4-3 to hire InR, with the GOP members supporting the change and Democratic commissioners opposing it.
David Landau, who heads the county and Nether Providence Democratic party organizations, afterward criticized the change to INR as wrong on several levels.
Dougherty said he knew Killion was affiliated with InR, but didn’t know he was an owner. Much, a fellow Republican, said he was likewise not aware of Killion’s ownership.
“My concern is a concern about perception. To me, it’s something that should have been disclosed,” Noyes said.
Another Democratic board member, Matthew Sullivan, said Simon Capital has done a “great job at less cost” handling the funds, leaving him puzzled about the need for a change.
“This smacks of patronage,” Sullivan said. “I’ve never understood the push to move away from Simon Capital given the fantastic job they’ve done.”
As Noyes went on to assert that most of InR’s municipal clients have come on board since Killion became a state lawmaker, Much banged the gavel, saying, “I’m not going to listen to this anymore.
“When you say there is a smell of impropriety, I take offense to that,” Much added.
He said InR, if selected, would serve at the will of the board and could be removed if the township was not satisfied with its performance.
The board then voted 4-3 to hire InR, with the GOP members supporting the change and Democratic commissioners opposing it.
David Landau, who heads the county and Nether Providence Democratic party organizations, afterward criticized the change to INR as wrong on several levels.
For one thing, he echoed Noyes’ point that the record of performance by Simon Capital did not warrant the firm’s replacement.
For another, he said it was wrong for an elected official to benefit from a contract with a town he represents.
“It’s just the machine feeding its own,” Landau said in a phone interview. “It’s a slap in the face of the taxpayers and the voters.”
But Killion said the controversy over InR’s selection was “purely politics.”
When he entered the Legislature about eight years ago, he sold most of his interest in the firm to partners and now owns about 25 percent, Killion said by phone.
“I’m not involved in day-to-day activities,” he said, adding that it is the partners who go out and pursue business from municipalities.
For another, he said it was wrong for an elected official to benefit from a contract with a town he represents.
“It’s just the machine feeding its own,” Landau said in a phone interview. “It’s a slap in the face of the taxpayers and the voters.”
But Killion said the controversy over InR’s selection was “purely politics.”
When he entered the Legislature about eight years ago, he sold most of his interest in the firm to partners and now owns about 25 percent, Killion said by phone.
“I’m not involved in day-to-day activities,” he said, adding that it is the partners who go out and pursue business from municipalities.
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