05/16/2022 | Press release | Distributed by Public on 05/16/2022 09:03
May 16, 2022
CHIEF INVESTMENT ADVISOR
WHEREAS, the City has five pension systems that offer defined benefit retirement plans to nearly 350,000 City employees and 320,000 retirees or their beneficiaries: the New York City Employees' Retirement System ("NYCERS"), the Police Pension Fund ("PPF"), the Fire Pension Fund ("Fire"), the Teachers' Retirement System ("TRS") and the Board of Education Retirement System ("BERS") (collectively, "the Systems"); and
WHEREAS, the Comptroller, through the Bureau of Asset Management, is the investment advisor to, and custodian of, the five System funds; and
WHEREAS, the City offers a defined contribution plan to its employees, known as the Deferred Compensation Plan (the "Plan"), which is administered by the Office of Labor Relations; and
WHEREAS, each of the Systems and the Plan has a Board of Trustees ("Board") to fulfill its investment and administrative functions, and those Trustees have a fiduciary responsibility to ensure that all investment and administrative decisions are made in the best interests of the respective System or the Plan; and
WHEREAS, in addition to the Comptroller and certain union leaders, the Mayor and/or members of the Administration, including the Police Commissioner, Fire Commissioner, Finance Commissioner, Chancellor of Education and members of the Panel on Educational Policy hold ex-officio seats on one or more System Boards; and
WHEREAS, the Mayor and members of the Administration, including the Commissioner of Labor Relations, Director of the Office of Management and Budget, Commissioner of Citywide Administrative Services, and Finance Commissioner hold ex-officio seats on the Board of the Plan; and
WHEREAS, pension benefits are defined by law and paid by the Systems to retirees and their beneficiaries regardless of whether annual investment income and employee contributions are sufficient to meet these obligations -because the City must make contributions to cover any System shortfalls; and
WHEREAS, because of adverse market conditions, enhancements in statutory benefits, and increases in the number of disability pensions granted, the City's pension contributions to cover such shortfalls have increased dramatically in recent years; and
WHEREAS, to preserve tax dollars for pension and non-pension related expenses, and to ensure appropriate investment opportunities are offered to employees participating in the Plan, the Administration's representatives on the Systems' Boards and the Plan must have an independent source of financial advice evaluating investment decisions.
NOW, THEREFORE, by the power vested in me as Mayor of the City of New York, it is hereby ordered that:
Section 1. Chief Investment Advisor. There is hereby established the position of Chief Investment Advisor as part of the Mayor's Office of Pensions and Investments. The Chief Investment Advisor ("CIA") shall:
§ 2. Cooperation and Assistance. All affected agencies shall cooperate and provide appropriate assistance to the CIA upon request.
§ 3. Executive Order No. 139, dated September 2, 2010, is hereby revoked.
§ 4. Effective Date. This Order shall take effect immediately.
Eric Adams
Mayor