Utah County Loses $360,000 as Sheriffs investigate Commissioners and Class Action is Filed

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) November 23, 2006 --

Last month Utah County Commissioners voted 2-1 to replace the county employee�s retirement plan provider. It became apparent last week that there is a $360,000 loss due to Market Value Adjustments (MVA) expenses. The expenses are customarily paid for by the new plan provider and occur when bonds are sold before maturity. In the next two weeks the Commissioners are expected to pay the $360,000 out of tax-payer dollars to cover their mistake of rushing the contract signing, not allowing the retirement plan committee to meet, and not negotiating MVA fees or investigate the hidden fees that a class action lawsuit against the new provider Nationwide alleges.

Since the change was announced in October without any public discussions or input from employees the Commissioners have been embattled. The Sheriff�s Department has assigned a Captain to investigate and hired outside legal council. Commissioner Jerry Grover and the Sheriff�s Department have been at odds since Commissioner Grover was investigated for trying to illegally change a land title into his name 8 years ago.

Nationwide is being sued in a class action lawsuit led by Orange County Sheriff�s Office in Orlando, Florida. The lawsuit was filed November 15 this year in Columbus Ohio and attorneys expect the claims to reach $5 billion. The lawsuit is over Nationwide�s secretive practice of �revenue sharing� with mutual funds. Nationwide requires mutual funds to pay a revenue share of 25 to 58 basis points annually on total assets Nationwide puts into their funds. These funds are then split between Nationwide and The National Association of County Governments (NACo). The problem is that these �revenue sharing� funds are taken from plan participants which is illegal according to NASD, SEC, and Labor Department rules.

Nationwide�s trouble began when they made an agreement with NACo where Nationwide would give a rebate to NACo for every county government plan Nationwide took over. In exchange NACo gave Nationwide unprecedented access and influence to all of NACo�s members. Since this agreement was struck, Nationwide has become the largest provider of retirement plans to county governments. NACo has also been under attack when news broke that taxpayers were financing annual conventions for elected officials in such exotic locals as Hawaii.

Grover and Deputy County Attorney Kent Sundberg frequently represent Utah County at NACo meetings. Sundberg sits on the retirement plan committee and Grover wouldn�t allow the retirement plan committee to meet and review the proposals before the commission voted even though the committee was not in agreement. Furthermore Grover protested when representatives from the counties largest departments wanted to speak before the commission voted. Sundberg voted in favor of Nationwide along with a staff accountant. The other two committee members voted in favor of the current plan provider.