Police and Fire pension fund probing ethics issue involving chief investment officer

New Jersey Police and Firemen’s Retirement System is conducting an internal review of their chief investment officer, Russell Niemie, after learning of a possible ethics issue involving his former employer, the New Jersey Globe has learned.

The probe follows a finding that Niemie had violated the federal Employee Retirement Income Security Act (ERISA) while serving as the chief investment officer of the New York State Nurses Association Pension Plan & Benefits Fund.

Last week, U.S. District Court Judge Lewis A. Kaplan affirmed a $96 million award to the nurses after an arbitrator found that White Oak Global Advisors, an investment advisor firm, interviewed Niemie for a job without advising pension fund trustees.

In late 2015, Niemie recommended a contract renewal for White Oak one day after he had interviewed for a job with the firm, according to records cited in a report by Pensions & Investments.

Niemie told the New Jersey Globe that he had no role in the renewal of White Oak’s contract.

“I was not part of the lawsuit.  I testified on behalf of the nurses.  I was not involved.  All I did was testify,” he said.  “The renewal came from legal and administrative staff.  I was never personally involved.  White Oak was our best performer. ”

According to Niemie, he had already resigned in his post at the nurses pension and benefits fund when he discussed a job with White Oak.

“I gave them almost a year’s notice,” Niemie said.   “I was already leaving and the board knew it.”

Niemie was named to the $350,000-a-year post in October 2020 after a national search conducted by Korn Ferry.

The New Jersey Police and Firemen’s Retirement System has retained Windels Marx, a top national law firm, to conduct their investigation.   The agency was not aware of the allegations against Niemie when they hired him, the New Jersey Globe has learned, and did not find out until last week.

It’s not immediately clear whether vetting by Korn Ferry, the search firm contracted by the state, was aware of Niemie’s past.  If they were, they did not share it with their client.

Niemie, a 66-year-old Lawrence Township resident, served as vice chairman and partner of White Oak from 2016 until 2019, according to his LinkedIn page, which lists no employment for the year before he took the New jersey job.

Murphy’s office declined to comment on Niemie.

In 2018, Murphy signed a new law that transferred control of the $27 billion fund to the Police and Firemen’s Retirement System, splitting it from the State investment Council and the Division of Investments.

This story was updated at 3:51 PM with comment from Niemie.