May 22, 2008 By Amy Zalar 3 min read

A request for an annual salary increase by Fayette County’s pension fund consultant was denied Wednesday by the Fayette County Retirement Board despite assertions from the consultant that the retirement fund has grown and his workload has increased since he was hired. Frank R. Burnette, principal and senior consultant for Morrison Fiduciary Advisors Inc. of Pittsburgh, told the board that the original contract under which he was hired covered certain services, but he is now doing more. Burnette provided the board with a list of extra work he has done in the last few months to make his case.

Burnette said nearly all his accounts include a “universal comprehensive fee,” and he doesn’t have anyone paying him less than $30,000. He said if he were granted an increase from $22,000 to $40,000, there would be no additional charges or fees.

Burnette previously said the current contract, which he inherited from a prior consultant, is for $22,000 annually, plus an amount of $5,000 for each search of financial companies that he completes. Burnette said last year he was paid about $30,000, but did work that was technically beyond the scope of the contract and didn’t charge the county for that work. Burnette said he was hired within six months of the beginning of 2004, for an original three-year contract that renews annually without action from either party to terminate the contract.

County Treasurer Bobby Danko said the board was really shocked the first time they were asked to pay $5,000 for a fund manager search.

Burnette said his current contract is based on 4 1/2 basis points, or criteria, and he is asking to be paid on 9 criteria. He said using the payment just on basis points, he would be getting a $38,000 salary.

Burnette estimated that he spends more time doing extra services than performance monitoring.

Commissioner Vincent A. Vicites said he was in favor of increasing Burnette’s salary to $30,000. Vicites said he is concerned about what the county is paying in fees.

“I think we need to strike a balance,” Vicites said.

Commissioner Angela M. Zimmerlink commented that Vicites used that phrase on Tuesday when talking about how much money the commissioners should put in a capital budget.

“That’s my word of the week,” Vicites said.

Zimmerlink said she believes some of the things Burnette listed as extra work is “part of the process.”

Zimmerlink suggested that maybe the board should put out a request for qualifications for a consultant instead of renegotiating in the middle of a contract.

Burnette said he didn’t think the board would get any $30,000 proposals.

“I’m usually cheaper than most,” Burnette said.

Burnette pointed out he is consulting on a $50 million retirement fund with seven managers, whereas there used to be a $25 million fund with three managers.

Commission Chairman Vincent Zapotosky said he would like to take a look at the contract, adding that the language is “soft” regarding exact duties.

Vicites said he thinks Burnette has been doing a good job but wouldn’t be in favor of paying $40,000.

“I’m very frugal and I want to do what I can,” Vicites said.

The board then voted to seek proposals for a large-cap value manager, an action that will mean $5,000 for Burnette.

Although the board previously voted to put out a request for proposals for a solicitor, no action was taken on that request.