Feb 3, 2009 9:59 pm US/Eastern
DiNapoli Says NY Pension Fund Down 20 Percent
NEW YORK (AP) ―
-
-
New York Comptroller Thomas DiNapoli said Tuesday the state's public worker pension fund has lost about 20 percent of its value to the global financial meltdown and needs more flexibility to invest in vehicles other than stocks to help recover. (File)
NY State Assembly
New York Comptroller Thomas DiNapoli said Tuesday the state's public worker pension fund has lost about 20 percent of its value to the global financial meltdown and needs more flexibility to invest in vehicles other than stocks to help recover.
Addressing public employee union representatives, DiNapoli said the fund is "secure" and diversified, with more than enough money to pay pensions.
But he warned that contribution rates may have to be increased in 2011 and 2012. DiNapoli said the rates have been cut five years in a row.
The fund's real estate and private equity investments have outperformed the stock market, which is down 35 to 40 percent and not expected to recover for years, the comptroller said. But the fund is near its legal limits in those investments.
The New York State Common Retirement Fund was valued at $154 billion last March 31, near its historic high. It had 677,321 active members and 358,109 pensioners and beneficiaries, paying out some $6.8 billion in benefits in the 2007-08 fiscal year.
In late October, Dinapoli said the fund had lost about 20 percent of its value, or almost $31 billion since April 1.
The fund has essentially stayed at that level, Dennis Tompkins, spokesman for the comptroller's office, said Tuesday. It was $121.7 billion on Dec. 31, with $39.5 billion in domestic equities, $15.3 billion in international equities, $42.1 billion in fixed-income investments, $12.5 billion in alternative investments, 49.3 billion in real estate, and $3 billion in what a comptroller's report called absolute return strategy.
"The concern, though, is after a year like this, what will it mean for the rates in 2011, what will it mean for the rates in 2012?" DiNapoli said. "There are ways for us with some legislative help to have an even more flexible and smarter strategy of investments that we think in the long run will help us to grow the fund in the right kind of direction."
(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
World's Most Useless Facts
Click to enlarge
BLIZZARD WARNING IN EFFECT 31 mins ago 
Terrier Mugged In Brooklyn 6 mins ago
Stumble It!
Comments