Public Pension Fund Pay to Play

The Times endorses the SEC’s proposed pay to play rules for public pension funds today.

The Securities and Exchange Commission long ago barred underwriters of municipal bonds from contributing to candidates and then doing business with them. But 10 years ago, the commission balked at expanding that order to pension funds.

Finally, last week the commissioners unanimously proposed excellent new rules to end pay to play for public pension funds and 529 college savings plans invested by states.

The SEC’s press release is here.

On July 22, the Securities and Exchange Commission voted unanimously to propose measures intended to curtail “pay to play” practices by investment advisers that seek to manage money for state and local governments. The measures are designed to prevent an adviser from making political contributions or hidden payments to influence their selection by government officials.


An additional release with video is here.

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