NYC Comptroller Rolls Out Initiative to Heighten Transparency of Pensions

(March 28, 2011) — New York City comptroller John Liu has announced a new transparency initiative to provide the public with greater access to information about the $113 billion New York City Pension Funds, which aiCIO profiled in it’s latest magazine issue as Mayor Bloomberg attempts to “professionalize” the system.

While Liu is responsible for overseeing NYC’s pension management, Bloomberg hired the City’s first chief investment adviser last year and brought on another senior professional to play an influential role on the system’s five pension boards, aiCIO reported. The mayor’s attempts to overhaul the system has stirred heated controversy and questions of overstepping boundaries, as insiders claim that Bloomberg favors greater attention to risk management and asset allocation and less emphasis on selecting asset managers, which is primarily Liu’s domain.

Liu has long championed improved transparency and accountability. “Taxpayers and pensioners deserve to know how the money is being invested and spent, and this project so empowers the public,” he said in a statement. “We have always aspired to run the best performing funds – it’s time we broaden our aspirations to also run the most transparent funds. In fact, greater transparency ultimately will lead to stronger performance.”

The new initiative, known as “Pension NYC,” consists of the following set of five tools, which will be rolled out over the course of this year and next and will allow the public to more closely track how the City spends tax dollars, according to a release on the Comptroller’s website:

1) Webcasting – Pension board meetings will be webcast live and then archived on the Comptroller’s website for on-demand viewing.

2) Online Library – Information about the Pension Funds will be published and archived online.

3) Interactive FAQ – Will allow the public to also offer comments and suggestions.

4) “Checkbook NYC ” Integration – The checkbook will post agency spending online in real time.

5) Real Time Investment Portfolio – Will allow the public to view real time data on the Pension Funds holdings.

The New York City Pension Funds include the New York City Employees’ Retirement System, the Teachers’ Retirement System, the New York City Police Pension Fund, the New York City Fire Department Pension Fund, and the Board of Education Retirement System.

Last month, in testimony before a joint hearing of the New York State Assembly Ways and Means Committee and the State Senate Finance Committee in Albany, Liu revealed that the city’s pension funds’ return topped 16% for the six months ending December 31. “It is no secret that pension costs are rising and that there is a need to address the issue, but a number of factors contribute to this increase, including investment losses over the past ten years – during which New York City was attacked and suffered through two recessions,” Liu said.