CIO Sought for New York Transport Authority Pensions

(May 29, 2014) — New York City’s Metropolitan Transportation Authority (MTA) is on the hunt for a chief investment officer to lead the running of $10 billion in assets across multiple pension plans.

The role has been created following an audit of the funds by Deloitte. According to the minutes of a MTA audit committee meeting in January, concerns were raised about the valuations of alternative investments in one of the funds—the MaBSTOA Pension Plan—which made up 40% of its total assets.

The minutes stated that the appointment of a CIO was recommended “whose responsibilities would include reviewing, managing, and establishing controls in this area”.

One of the new CIO’s first tasks will be to address a major funding gap in the MTA’s Long Island Rail Road (LIRR) Additional Pension Plan, which is less than 30% funded. The audit committee meeting minutes stated that the LIRR plan had an unfunded liability of $1.2 billion, which it hopes to significantly shrink by 2017. Two other funds have unfunded liabilities of more than $600 million each.

All liabilities still unfunded on January 1 2015 will be recorded in the MTA’s financial statements.

The job advert posted by the MTA indicates a pay packet of between $131,000 and $197,000. The successful candidate will work closely with NEPC, which acts as investment consultant to the funds.