News About Pensions

Tracking Pensions across 2 stories.

Tracking: Pensions

1. NYC Pension Funds Launch First Public Equity Index Manager Search Since 2017

Four of New York City's five public pension systems are soliciting asset managers for passive public equity index-based investment services, marking the first such search since 2017.

The Teachers' Retirement System, NYC Employees' Retirement System, Police Pension Fund, and Fire Pension Fund are participating, while the Board of Education Retirement System may join later.

The contracts, managed by the Comptroller's office, will run an initial three years with up to six years of extensions. Existing equity index manager mandates expire by the end of 2026.

Bidders must have at least $20 billion in equity index assets under management and one institutional account worth at least $3 billion for five years.

Key facts:

- Four NYC pension funds seek passive public equity index managers for the first time since 2017.

- The pension systems hold nearly $320 billion in assets, with over $127 billion in public equities.

- Current equity index manager mandates expire by the end of 2026.

- Proposals for leverage, derivative strategies, or exchange-traded products will not be considered.

- The deadline to submit proposals is July 15.

Why it matters: This search signals a competitive shake-up for the asset managers currently running New York City's massive passive equity portfolios, which make up the bulk of over $127 billion in public equity investments.

By not allowing incumbents to stay on autopilot, Comptroller Mark Levine is forcing firms to re-earn their mandates, potentially lowering fees or changing allocation strategies.

The outcome will directly affect the returns funding pensions for hundreds of thousands of city teachers, police, firefighters, and other public sector workers and retirees.

Investors and other large public pension plans should watch which managers win these contracts, as it may indicate shifts in passive investing best practices for multi-billion dollar institutional funds.

Ai Cio

2. Tennessee law may force retired sheriff's officers to repay pensions

Five retired Knox County Sheriff's Office employees indicted on felony conspiracy charges could lose their pensions and be forced to repay retirement benefits already received under Tennessee law.

The Knox County retirement policy mandates forfeiture of employer contributions for felonies committed in official duties, and state law requires returning county-paid funds.

In May, former assistant chief deputy David Henderson received a demand letter to repay thousands from the Uniformed Officers Pension Plan. Three additional officers approved for retirement in June face the same potential penalty if convicted.

The law does not specify a collection process, leaving enforcement uncertain. The case stems from one of Tennessee's largest law enforcement corruption crackdowns, with 11 indicted overall.

Key facts:

- Five retired KCSO officers indicted on felony conspiracy charges May 14.

- David Henderson already ordered to repay pension funds received.

- Three more officers approved for retirement June 22 face same penalty.

- State law requires forfeiture of employer pension contributions if convicted.

- Tennessee law lacks a defined process to force repayment.

Why it matters: This case tests the reach of pension forfeiture laws for public officials convicted of workplace felonies.

Retirees who thought their benefits were secure face sudden financial loss, while the unclear collection mechanism creates legal uncertainty for pension boards.

The outcome may influence how other jurisdictions craft forfeiture rules and whether retirees factor repayment risk into plea decisions.

Knoxnews