New York City Council Header
File #: Res 0159-2010    Version: * Name: State Legislature to place the control of the state pension funds under the Board of Trustees of each fund.
Type: Resolution Status: Filed
Committee: Committee on Civil Service and Labor
On agenda: 4/14/2010
Enactment date: Law number:
Title: Resolution calling upon the New York State Legislature to place the control of the state pension funds under the Board of Trustees of each fund.
Sponsors: G. Oliver Koppell, Annabel Palma
Council Member Sponsors: 2
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
12/31/2013*G. Oliver Koppell City Council Filed (End of Session)  Action details Meeting details Not available
4/14/2010*G. Oliver Koppell City Council Referred to Comm by Council  Action details Meeting details Not available
4/14/2010*G. Oliver Koppell City Council Introduced by Council  Action details Meeting details Not available
Res. No. 159
 
 
Resolution calling upon the New York State Legislature to place the control of the state pension funds under the Board of Trustees of each fund.
 
 
By Council Members Koppell and Palma  
 
      Whereas, The New York State common retirement fund holds assets in trust for more than one million employees and retirees from the State government, most local governments, and some public authorities; and
      Whereas, The common retirement fund is the state's largest pool of money, valued at one hundred and twenty-nine point four billion dollars, and is the third largest public pension fund in the nation; and      
      Whereas, The common retirement fund is under the sole control of the State Comptroller who acts as both trustee and manager of the fund, while most other states rely on a board to oversee their pension investments; and
      Whereas, The Attorney General's investigation into the management of the common retirement fund cited numerous incidents of abuse in the current system, led to a number of criminal charges, and revealed that almost half of the agents obtaining investments for the common retirement fund were not properly licensed and registered with a broker-dealer as required by federal securities laws; and
      Whereas, The State Comptroller may invest up to seventy percent of the common retirement fund assets in equities investments so long as they meet the prudent investor standard and thirty percent of the common retirement fund assets in fixed income investments; and
      Whereas, The New York State Attorney General and state lawmakers have announced a proposal that would create a board of trustees to oversee the state's pension funds, in order to avoid abuse of the common retirement fund; and
      Whereas, The proposed Board of Trustees would provide greater accountability and transparency of those overseeing the common retirement fund assets; and
      Whereas, The proposed Board of Trustees would include members appointed by the Governor, the Attorney General, and the State Legislature as well as members of the retirement system; and
      Whereas, Members of the proposed Board of Trustees would be required to act in accordance with their fiduciary duty, take the oath of office, comply with all regulatory requirements and the code of ethics, report and disclose all conflicts of interest, and participate in training with regards to these requirements; now, therefore, be it
      Resolved, That the Council of the City of New York calls upon the New York State Legislature to place the control of the state pension funds under the Board of Trustees of each fund.
 
LS # 7524-S8
JW
Date 03/16/10