State teacher retirement system’s top post draws 26 applicants

State government’s budget administrator, Central Arkansas Water’s general counsel and a deputy director of the Arkansas Teacher Retirement System are among 26 applicants vying to be the system’s next director, records show.

The teacher retirement system is state government’s largest such agency, with more than $17 billion in investments and more than 100,000 working or retired members.

Both Budget Administrator Duncan Baird and Central Arkansas Water General Counsel David Johnson are former state lawmakers.

Baird is a former Republican representative from Lowell who was a co-chairman of the Legislature’s Joint Budget Committee from 2013-15. He then served as Republican Gov. Asa Hutchinson’s budget director before his promotion to budget administrator in June 2015.

Johnson is a former Democratic senator from Little Rock who was a co-chairman of the Joint Committee on Public Retirement and Social Security Programs from 2015-17 and has been Central Arkansas Water’s general counsel since May 2016.

System Deputy Director Rett Hatcher is Hutchinson’s former legislative affairs director. He has worked at the system since June 2017.

Hatcher’s references include Hutchinson; Senate President Pro Tempore-elect Jim Hendren, R-Sulphur Springs;

House Speaker Matt Shepherd, R-El Dorado; a Joint Budget Committee co-chairman, Sen. Larry Teague, D-Nashville; and former Sen. Mary Anne Salmon, D-North Little Rock, according to his job application.

Johnson’s references include Hendren and Salmon, according to his job application. Hendren, whose uncle is Hutchinson, said he would be glad to be a reference for Baird, too.

Hutchinson said in a written statement that this “means the teacher retirement board has some very well qualified individuals seeking the position.

“I have not indicated any preference for the position. The board is independent and must make the selection,” the governor said in a written statement. The 15-member board includes two of the governor’s appointees, Education Commissioner Johnny Key and Bank Commissioner Candace Franks.

George Hopkins, who has been the system’s director since December 2008, announced Oct. 1 his intention to retire by the end of this year. Hopkins is an attorney and a former Democratic state senator from Malvern. His salary is $180,108 a year, according to the Arkansas Transparency website.

Baird’s salary is $123,918 a year and Hatcher makes $118,002 a year, according to the Arkansas Transparency website. Johnson’s salary is $135,283 a year, according to Central Arkansas Water.

The Legislature is in the middle of budget hearings. Baird said he was “so focused right now on the budget” he was unable to discuss why he applied for the director’s job.

Johnson could not be reached for comment Tuesday at his office.

Hendren, Shepherd and Teague said they were unaware that Baird applied for the director job.

Teague said he believes all three candidates would do a good job as director.

Jeff Stubblefield of Charleston, chairman of the system’s board of trustees, said the board plans to meet Thursday in a closed-door executive session to select a group of candidates to interview.

“There is a wide variety of education levels, interests, inside and outside the state,” he said in an interview. “I am pleased with those who have shown an interest.”

QUALIFIED APPLICANTS

Although 26 people applied for the director’s job that was posted from Oct. 5-19, the system’s human resources department has determined on a preliminary basis has just nine meet the minimum qualifications, said Vicky Fowler, human resources manager. The applications were obtained under the state Freedom of Information Act.

Besides Baird, Johnson and Hatcher, those who met the qualifications include:

■ System General Counsel Laura Gilson and Associate Director of Operations Clint Rhoden.

■ Nassau County School District Director of Career Education Brent Lemond in Fernandina Beach, Fla.

■ U.S. Bank loan officer John Ellis in San Luis Obispo, Calif.

■ New Mexico Military Institute Leadership Adviser Ronald Dubois, who is a former financial adviser for AXA Advisors of North Little Rock.

■ Timothy Viezer, chief investment officer for the Sewerage & Water Board of New Orleans. Viezer is the former investment director for the North Carolina department of state treasurer.

“The Board has been provided all 26 applications, with the Board ultimately making the decision on what applicants meet minimum qualifications,” Fowler said.

WORK HISTORIES

Baird served in the House from 2009-15. He was a securities trader at Arvest Asset Management from 2004-09, according to his job application. He received a bachelor’s degree in finance in 2003 and in accounting in 2009 from the University of Arkansas, Fayetteville. His listed references include former House Speaker Davy Carter, R-Cabot, who is an executive for Centennial Bank; and Sen. David Sanders, R-Little Rock.

Johnson, who received his bachelor’s degree in government from Georgetown University in 1991 and his law degree from UA in 1997, served in the House from 2005-09 and in the Senate from 200917. He was vice president of community leadership for the Arkansas Community Foundation from 2010-15; an attorney at Wright, Lindsey & Jennings LLP from 2007- 09 and at his own legal practice from 2005-07; a deputy prosecuting attorney from 1998-2004; and a staff member for the U.S. Senate Committee on Small Business chaired by U.S. Sen. Dale Bumpers, D-Ark., from 1991-94, according to his job application. His listed references include Pulaski County Prosecuting Attorney Larry Jegley.

Hatcher was an aide to Hutchinson from 2015-17 and an aide to Republican Secretary of State Mark Martin from 2011-15. Hatcher was a Van Buren police officer from 2008-11, according to his job application. He received a bachelor’s degree in accounting from the University of Arkansas at Fort Smith in 2010 and a law degree from the University of Arkansas at Little Rock in 2014.

SYSTEM’S FUTURE

In a written statement released Saturday in advance of an Arkansas Education Association rally at the state Capitol, Hutchinson reiterated his remarks made three weeks ago that he doesn’t have any plan to merge the Teacher Retirement System with any of state government’s other retirement systems.

“I trust the Arkansas Teacher Retirement System board and support its independence and the long term health and viability of our teacher retirement system,” the governor said. “I value the teachers of our state and am committed to supporting a strong and stable retirement for them.”

Besides the governor’s two appointees on the system’s board, the board includes the state treasurer and auditor and 11 trustees elected by the working and retired members.

Asked whether he plans to try to change the composition of the board, Hutchinson said Tuesday he had no such plans.

“It has functioned well and should remain independent,” he said in a written statement to this newspaper.

Sen. Linda Chesterfield, D-Little Rock, who is a retired teacher, said much of teachers’ anxiety “is coming from the legislative branch more so than perhaps the governor because people continue to think that they are searching for a solution where there is no problem.

“This business of [changing from] a defined benefit versus a defined contribution [plan like a 401 (k) plan] continues to rear its ugly head and that would have a deleterious on people’s lives going forward,” she said. “We want it to be cut off because the system is sound.”

But state Rep. Mark Lowery, R-Maumelle, said it’s “a lie” that lawmakers “are trying to merge systems, or do money grabs or convert to 401 (k) plans.”

He said he wants to make sure the system can survive the possibility of another Great Recession.