Pension group changes view on private equity bills

Date: Wednesday, September 5, 2007
Author: Reuters.com

A large trade association representing more than 500 U.S. pension funds reversed its stance on two legislative proposals meant to more than double the taxes aimed at private equity firms, according to a letter obtained by Reuters on Wednesday.

The National Conference on Public Employee Retirement Systems (NCPERS) sent a letter dated Sept. 4 to the leaders of the Senate Finance Committee -- Chairman Max Baucus, a Montana Democrat, and senior Republican Chuck Grassley of Iowa -- asking them to disregard a previous memo it sent to the lawmakers.

The previous letter, dated Aug. 24, expressed worry that the proposed tax increases would hurt the economy, public pension funds, and public employees. Pension funds invest large sums of money into private equity firms and hedge funds.

The Sept. 4 letter said while some NCPERS members feel the bills could affect public employees, the majority of its members did not share that opinion. The letter went on to say that the group would not take a stance on the bills.

An NCPERS spokesman confirmed both letters on Wednesday.