NYC had the opportunity to set a new standard for public pension fund governance. However, Reuters reports the unfortunate news that Liu’s proposal is DOA:
A contested plan to consolidate the management of New York City’s public pension funds, which was presented in 2011 as a way to depoliticize the system and improve returns, will be dropped by Comptroller John Liu, a source familiar with the situation said on Saturday.
“Liu is pulling” the plan, said the source, who requested anonymity. “Most unions were never really supportive because they believed the city should give some kind of collective bargaining credit to the unions” in return for their agreement.
The comptroller’s decision to relinquish the plan was first reported by the New York Post, citing unnamed sources. . . .
The aim of the plan was to save money, by fattening the pension funds’ returns and lowering management costs.
“We’re overhauling an antiquated pension management system that has needed restructuring for generations – depoliticizing the process, further professionalizing the staff and implementing industry best practices,” Bloomberg said.
NYC Comptroller John Liu (image mycaribnews.com)