October 27, 2008
Pension fund shrouds its losses
How much has the investment portfolio of the Common Retirement Fund plummeted in recent months? The state comptroller's office won't say, because it doesn't want to "create anxiety".
Anxiety for whom? Not for retirees or current employees of the state and local governments. The state Constitution says their pension benefits cannot be reduced. Perhaps anxiety for taxpayers. They must make up the difference if the pension investments fail to generate adequate revenue.
Gannett News Service asked the office of Comptroller Thomas DiNapoli how much money the pension fund had lost since March when it was worth nearly $154 billion, it refused to answer.
A spokesman for DiNapoli, Robert Whelan, said updates on the size of the fund are issued only once a year, because the fund takes a long-term perspective on its investments.
Releasing current information "could be misleading. It could create anxiety," Whelan said. Gannett has filed a formal FOIL request for the information.
Meanwhile, the Teachers Retirement Fund says the value of its portfolio dropped $7 billion between July 31 and September 30, to $88 billion from $95 billion.
Taxpayer contributions to pension costs are based on a blended five-year average on investment returns.
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