Prohibits investment managers from assisting in investing moneys belonging to retirement system
Summary
A11078 would amend the Education Law to prohibit the retirement board of the New York State Teachers’ Retirement System from entering into new contracts with outside investment managers to invest retirement system funds, other than real property. It also bars the fund from renewing existing contracts with such managers. The bill defines “investment manager” broadly to include any non-employee person or entity engaged to manage part or all of the fund’s investment portfolio, and defines “manage” to include analysis of holdings as well as buying, selling, and lending securities.
The measure would shift investment authority back to the retirement board and away from external managers, beginning on the effective date of the chapter and taking effect January 1 following enactment. In practical terms, it would change how the retirement system can allocate and oversee its assets, limiting the use of outside professional investment services for the fund’s portfolio management functions.
Impact
The bill would amend subdivision 18 of section 508 of the Education Law, which governs investment authority for the retirement system, by removing the board’s ability to delegate investment management to outside firms for most assets. It would prohibit new contracts and contract renewals with investment managers for portfolio management of retirement system moneys, while leaving real property investments outside the restriction. The affected parties are the retirement board, the common retirement fund, outside investment managers, and indirectly the system’s members and beneficiaries whose assets are managed under these rules.
Sentiment
Based on the bill’s introduction and lack of recorded opposition or committee testimony in the provided materials, the bill appears to have been presented as a policy change rather than a highly contested measure at this stage. Its referral to the Assembly Committee on Governmental Employees suggests it was still in early committee consideration, with no vote history available to indicate broader support or resistance. The overall tone in the available record is neutral and procedural.
Contention
The main point of contention is likely the bill’s restriction on outsourcing investment management. Supporters may view the measure as increasing direct public control over retirement assets and reducing reliance on private managers, while opponents may argue that it limits professional investment expertise, flexibility, and potentially performance. Another possible issue is the breadth of the definition of “manage,” which covers analysis, purchases, sales, and lending, making the prohibition more expansive than a narrow ban on discretionary portfolio management.
Prohibits the use of investment managers in the New York state and local police and fire retirement system; defines who qualifies as an investment manager.
Public Investments; to prohibit Board of Control of Employees' Retirement Systems of Alabama and Teachers' Retirement Systems of Alabama from investing with restricted entities affiliated with Communist Chinese military companies
Enacts the "New York state agency BIPOC asset management and financial institution strategy act" to ensure the promotion of equity, diversity, and inclusion within the state pension system and the New York city pension system's investments by mandating a minimum allocation of assets to BIPOC asset managers, BIPOC financial institutions, and BIPOC financial or professional service firms; addresses disparities in investment opportunities and fosters economic growth within BIPOC communities, aligning with best practices in investment management and bolstering the financial well-being of New York City and state and residents thereof (Part A); relates to fair investment practices by investment advisers within the state of New York (Part B).
Enacts the "New York state agency BIPOC asset management and financial institution strategy act" to ensure the promotion of equity, diversity, and inclusion within the state pension system and the New York city pension system's investments by mandating a minimum allocation of assets to BIPOC asset managers, BIPOC financial institutions, and BIPOC financial or professional service firms; addresses disparities in investment opportunities and fosters economic growth within BIPOC communities, aligning with best practices in investment management and bolstering the financial well-being of New York City and state and residents thereof (Part A); relates to fair investment practices by investment advisers within the state of New York (Part B).
Relating to the fiduciary responsibility of the governing body of the public retirement systems in this state and the investment managers and proxy advisors acting on behalf of those systems.
Public Investments; to prohibit the Board of Control of the Employees' Retirement System and the Teachers' Retirement System from investing with restricted entities affiliated with Communist Chinese military companies
Relating to the fiduciary responsibility of the governing body of the public retirement systems in this state and the investment managers and proxy advisors acting on behalf of those systems.