NYC Urged to Change Investing Mix to Reduce Pension Gap
The Deputy Mayor of New York City, Robert Steel stated recently that NYC is over-weighted in stocks and needs to invest more of its pension funds in other assets such as US Treasuries. He also added that the benefits for new hires should be reduced. New York City's five pension funds are the sixth largest in the US public pension fund; amounting to a total of $119 million. Robert Steel said that separate funds for the police, firefighters and civilian workers need to be kept. The smallest pension fund, which covers school workers that are not teachers, would be merged with the teachers' fund. The four remaining boards would set investment strategies but they would lose their power, including the ability to pick their own investment managers.