### Allegations of Financial Misconduct in Minnesota’s Teacher Retirement Fund
Recent claims by a prominent pension analyst suggest troubling financial practices within Minnesota’s public school teachers’ retirement fund, which operates under the administration of Governor Tim Walz, who has recently been selected as Vice President Kamala Harris’ running mate. Reports indicate that this retirement system may be engaging in deceptive reporting concerning its expenses and investment returns.
#### Investigative Claims
Edward Siedle, an independent investigator focused on pensions, contends that the Teachers Retirement Association (TRA) has disclosed fewer than 10% of the $2.9 billion spent on fees over the last decade. He criticized TRA for reporting investment gains marginally above its performance benchmarks—by only 0.2%. Siedle described these results to The Post as “almost inconceivable.”
Siedle remarked, ”Even Bernie Madoff never asserted he could outperform the market every year—and certainly never with such consistent precision.” He referred to TRA’s reported performance as a “Madoff-like phenomenon during Walz’s leadership.”
#### Contextual Background
Bernie Madoff orchestrated one of Wall Street’s most notorious frauds until his arrest in 2008 for operating a Ponzi scheme that deprived many investors of their savings.
#### Oversight and Responsibilities
As chairman since January 2019 of the Minnesota State Retirement System—which manages $140 billion in funds including $28.2 billion allocated specifically for teachers—Walz is under scrutiny regarding these allegations.
“I question whether he possesses any background knowledge pertinent to finance or pension management,” Siedle claimed further, adding that it is essential for board members to stay informed about fees and ensure accurate disclosure regarding investment performance.
#### Teacher Concerns Over Retirement System
Katie Dickerson, a teacher approaching retirement age, expressed her frustrations earlier this year about having elevated contribution requirements without any noticeable enhancements to the benefits provided by TRA—resulting in prolonged working years or incurring severe penalties during early retirement transitions.
“We face not only steep contributions into TRA but also endure extensions on our career spans unless we are prepared to risk hefty penalties,” she stated during her testimony before Minnesota’s Legislative Commission on Pensions and Retirement.
#### Fee Discrepancies Highlighted
For fiscal year 2023, TRA reported an impressive return rate of 8.9% backed by just over $24 million in management fees; however, Siedle estimates actual costs could range between $334 million and $467 million—representing approximately 5% to 7% of TRA’s private assets under management—with even a conservative estimate showing fees exceeding ten times what is reported.
Despite requests from Siedle seeking detailed investment documentation from both the TRA and state agencies going unanswered thus far,
#### Reporting Irregularities Noticed
Siedle pointed out involvement from state auditors and attorneys general who typically engage in investigations are part of Walz’s pension board—a potential conflict influencing oversight decisions leading him to file whistleblower claims with both federal SEC and FBI authorities this past July.
The campaign team for Harris-Walz has yet to issue comments related to these allegations following attempts at outreach by Fox News Digital.
