pay-to-play

Connecticut, like New York, places all pension decision-making authority in the hands of a sole trustee, rather than spreading it among the members of a board. Many governance experts think the use of a sole pension trustee does not build enough checks and balances into the system.

But decision-making by boards is not perfect either. California’s big public pension fund, known as Calpers, has suffered so many pay-to-play allegations that in 1997, the State Legislature passed a law barring such payments. But a member of the Calpers board, Kathleen Connell, took the matter to court and won. She argued that the law made it harder for incumbents than their challengers to raise campaign money. The law was thrown out.