NEW YORK (CBSNewYork) — City officials are hoping to get a bigger bang for their buck with a major overhaul of New York City’s public pension system.

Mayor Michael Bloomberg and Comptroller John Liu announced a deal Thursday that could save taxpayers billions of dollars.

The plan is to consolidate management of the city’s five pension plans into one unified board with about a dozen directors. The current five boards have 58 directors.

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“This is a game changer,” Liu said. “I applaud and thank our labor leaders and trustees for delivering a solid win for taxpayers and city workers alike.”

Bloomberg said the main features of the overhaul include “depoliticizing pension investments, further professionalization of management staff and the implementation of industry best practices.”

“Those reforms we think will make a big difference in the management of city pension assets,” Bloomberg said. “They’ll overhaul an antiquated pension management system that has needed restructuring for generations.”

This will be the first major reform of the system in 70 years.

The funds have separately served retired teachers, police officers, firefighters and other city employees.

Steve Cassidy, head of the firefighter’s union, supports the plan.

“It’s going to generate additional returns which is better for taxpayers, it’s better for New York City firefighters,” Cassidy said. “We’re going to move it to the 21st century with a really professional pension investment system.”

Officials hope a more streamlined pension system will generate more returns and the city will get some relief.

The overhaul will need Albany’s approval.

Comments (4)
  1. Barb says:

    As a long time DOE staff member, I have an issue with this. NYCTRS is well run and and well-funded. Our own members, who we elect, sit on the guiding board and work with the city appointed trustees. When mistakes are made on retirees pensions, we do have a little leverage to get it fixed. Most of us work 30 years or more before retirement. If we have less service, we only receive a portion of pension.
    On the contrary, most of the uniformed services retirement plans are underfunded. The city has never contributed enough to actually compensate for the fact that most uniformed services leave at full retirement at 20 years and collect for 30 or 35 years!
    I do not want my hard earned funds to finance the plans the city has underfunded for years!!!
    This is just another slick cover for Bloomberg under the guise of so-called “good government” measures

  2. Carlos Liriano says:

    to many chiefs and no indians, ja ja ja

  3. Dan Te says:

    Why is there 58 directors managing just 5 pension plans? Do they really need 12 directors to manage a single pension plan?

    1. Tommy says:

      Yes, that is why 1/2 of our paycheck disappears every week.

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