Union Letter: Pension System Change Needs Scrutiny
Trustees of the New York City Employees’ Retirement System including TWU Local 100 President John Samuelsen fired off a letter to the System asking for more information about proposed major changes to investment practices recommended by Comptroller John Liu and Mayor Michael Bloomberg. The letter came after the Mayor and Comptroller announced changes at an October 27th press conference with practically no notice to Union leaders.
NYCERS is the organization responsible for investing pension funds of transit workers and many other public employees, including members of DC 37 and Teamsters Local 237. It is one of five pension funds investing for New York City employees. The others are two Department of Education funds, and funds which invest for Police and Fire employees.
The letter, signed by President Samuelsen, Teamsters Local 237 President Greg Floyd, Public Advocate Bill de Blasio and four of the five NYC Borough Presidents, asks those floating the new proposal to explain how expected higher rates of returns would be achieved. It also asks whether the new investment structure, which centralizes authority in one Chief Investment Officer, will follow principles of responsible investing and what policies will be adopted regarding investing using women and minority owned investment firms. Download the letter here.