Oct. 27 (Bloomberg) -- New York City is seeking to combine the investment management of its five pension funds to drive down costs, improve decision-making and boost returns, Mayor Michael Bloomberg said.
Bloomberg, City Comptroller John Liu and labor leaders announced the agreement in principle at a press conference at City Hall in Manhattan. The plan, which would create an independent investment board and the post of chief investment officer, needs the approval of the state Legislature in Albany, Bloomberg said.
New York City’s pension funds for teachers, police officers, firefighters, civil employees and education administrators collectively manage about $120 billion. Each fund has its own board, consultants and investment policies. The comptroller serves as investment adviser to the five funds.
According to an August 2003 report commissioned by Liu’s predecessor, William C. Thompson, Jr., the pension funds’ organizational structure is different from every other major public retirement plan and “imposes significant burdens on the staff.”
The mayor is founder and majority owner of Bloomberg News’s parent, Bloomberg LP.
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