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0 <br />St. Paul Pioneer. Press Tunday, Auguri 28, 19U * 5 A <br />Intense fight expected <br />for pension fund post <br />By Steven Thomma <br />Allers, president of Local 284 of <br />and Bill Gardner <br />the School Service Employees In. <br />Simi( ✓titters <br />lernational, is expected to seek the <br />The executive director of Minne- <br />171,000•a•year post being vacated <br />sota's largest public pension fund <br />by Mclaren. several board mem• <br />is expected to resign today, and a <br />ppoower play for control of the 12 <br />hers said Mrlaren plans to take a <br />�h with the Cahlomia Teachers <br />6illioo account spilled over into an <br />etlremeol Association m October. <br />angry confrontation Monday night <br />in a St. Paul hotel. <br />On Monday night, Allersmet be. <br />bind closed doors with eight retire - <br />We Mclaren's expected depot• <br />ment associaUon board members <br />described as loyal to him. The <br />ture from the Public Employees <br />Retirement Association clears the <br />eight represent a majority of the <br />way for controversial union execu- <br />15-member board, scheduled to ac- <br />five John Allers to consohdate his <br />cept Mclaren's resignation today. <br />powerful influence over the <br />Two members of the minority <br />group's board o1 directors. <br />Please see Pension- 5A <br />Pension.* Big fight expected <br />Continued from Page 1A <br />bloc on the board, Morris Anderson <br />and Richard Patterson, learned of <br />the gathering at the Granada Roy. <br />ale Hometel and attempted to en- <br />ter it. They said they thought the <br />meeting with Allers and Mclareo <br />was called to plan Allers' appoint• <br />ment and that the unannounced <br />meeting violated the state's Open <br />Meeting law. <br />"Do you want to leave or do we <br />call the police and have you thrown <br />out?" Allers asked Anderson and <br />Patterson, who were accompanied <br />by their attorney and a reporter <br />for the St. Paul Pioneer Press and <br />Dispatch. <br />Allers insisted the meeting was <br />unrelated to business of the Public <br />Employees Retirement Associa- <br />tion, despite the presence of associ- <br />ation stsUonery in front of him. <br />Patterson and Anderson later said <br />they had seen what appeared to be <br />a resoiutlon naming Allen to re- <br />place MclArea. <br />"Thu has nothing to do with <br />PERA," Allen told the two bard <br />member. "its a private meeting <br />to discuss matters relating to John <br />Allers." <br />Patterson, Anderson, their attor• <br />Bey and the reporter eventually <br />left the meeting when asked to do <br />so by a hotel employee. The meet• <br />in4 broke up shortly afterward. <br />'He called his eight supporters <br />together sad told them what their <br />marching orders were annciating <br />Mr. Allers," Patterson said later. <br />Andersoo said be would attend <br />today's meeting "with a lawsuit in <br />hand" and that be would seek a <br />court order blocking Allers' ap <br />pointment if it is carried out by the <br />board. He said be would charge <br />that al.rs don no, unmet quaUfica- <br />lions set for the position. He also <br />suggested he would accuse the <br />board of reaching the decision sub- <br />sequent to an illegally closed meet. <br />ing. <br />When informed of the Monday <br />gathering, Jon Murphy, the special <br />assistant attorney general assigned <br />to the board, said, "It sounds like it <br />would be a violation" of the Open <br />Meeting Law. <br />"Anytime two public officials <br />get together to talk about public <br />business, it should be an open <br />meeting," Murphy said. <br />He said, however, he did not <br />know what was discussed at the <br />meeting. The board's Budget and <br />Personnel Committee normally <br />meets the night before a regular <br />board meeting. Murphy said, but <br />this mooth's committee meeting <br />was canceled. <br />Mclaren said he was invited by <br />Allers to stop at an informal dinner <br />meeting so those present could <br />wish him well in his new job. Al. <br />(bough he arrived late, he said no <br />food was served. He was only pres. <br />ent for 10 minutes before Patter- <br />son and Anderson entered, <br />McGren said, and no retirement <br />association business was discussed. <br />"I didn't feel they) were plotting <br />against the world," McLareo said. <br />John R. Finnegan, vice <br />president/editor of the Pioneer <br />Press and Dispatch, said officials <br />of the oewspapers would consider <br />Iii"ng a civil lawsuit challenging Mon <br />day nday right meeting as a vlo• <br />lotion of the Open Meeting law. <br />The employees' association rep <br />resents 100,000 working public em- <br />ployacs in Kmaesola and 20,000 <br />retired employees. It oversees ac• <br />counting, sets benefits and issues <br />pension checks. But the associaUoo <br />does not control lbe investment of <br />its 12 billion in hods. <br />That task is reserved by state <br />law for the State Investment <br />Board, a group comprising Gov. <br />Rudy Pe ich and other elected of. <br />ficials. The association has criU• <br />cited the board's iovestments and <br />bas attempted to wrest control. <br />Allers ran unsuccessfully for the <br />state Senate in 1980 and for state <br />treasurer in 1982. <br />He was appointed to the PERA <br />board in 1977 when the Legislature <br />decided that one seat should go to a <br />labor representative. Lawmakers <br />changed the law in 1979, saying the <br />labor seat should go to the the <br />largest statewide labor organiza- <br />tion. <br />Ile Minnesota AFLeCIO, the <br />largest statewide labor group, <br />wanted the seal. But the retire• <br />meot association board kept Allen <br />in place. A court order upheld that <br />decision uoW 1982, when he was <br />unseated. <br />Although Allers no longer sits on <br />the board. be Influences the votes <br />of the eight members he met with <br />Monday iugbt, according to Patter. <br />too, Anderson and labor sources. <br />Allen broke with other labor <br />leaden In 1071 and supported <br />Independent -Republica Al QWe in <br />his successful campaign to unseat <br />Democratic -Farmer -Labor Gov. <br />Rudy Perpicb. <br />