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Independent NYSERS Pension Fund Task Force Releases Report

Independent NYSERS Pension Fund Task Force Releases Report
Source: Office of the State ComptrollerDiNapoli: Many Reforms Already Implemented; Reforms Will Continue
New York State Comptroller Thomas P. DiNapoli, the sole trustee of the New York State Employees' Retirement System has accepted and released the report of the Pension Fund Task Force, an independent advisory panel created in December 2007 to review the practices and policies of the New York State Common Retirement Fund (CRF), is posted on the Internet at http://www.osc.state.ny.us/reports/pension/taskforce09.pdf .

DiNapoli said that many reforms have already been implemented and that more reforms may be expected to be set in place.

Mercer Investment Consulting, Inc., an independent consulting firm, will conduct a compliance review of every transaction approved by DiNapoli since he took office in February 2007, including those covered under the new regulations and procedures instituted by DiNapoli and the State Insurance Department.

The Task Force consists of six member: Chair Shannon O?Brien (former Massachusetts Treasurer); Wale Adeosun (Chief Investment Officer, Rensselaer Polytechnic Institute); Peter Clapman (retired Senior Vice President, TIAA-CREF); Wayne Diesel (former New York State Budget Director); Alan Lubin (Exec. Vice President, New York State United Teachers); and Diana Taylor (Managing Director, Wolfensohn & Co.).

?The Task Force compared the CRF with public pension fund peers across the nation,? O?Brien said. ?The CRF is already operating under best practice policies and is one of the most transparent public pensions in the nation. And Comptroller DiNapoli has committed to pushing forward with even more reforms. It?s rare that an elected official would so willingly open up his agency to the kind of scrutiny the Task Force pursued. But the Comptroller not only welcomed that scrutiny, he invited it. And he?s already agreed to implement the Task Force recommendations.?

The Task Force reviewed and endorsed the reforms DiNapoli had previously implemented. In addition, the Task Force made recommendations including providing for

Quarterly reporting of CRF?s investment results;

Publication of CRF policies, procedures and guidelines on the Comptroller?s Web site;

Making permanent DiNapoli?s placement agent and intermediary disclosure policy to ensure transparency in future administrations;

Expanding and strengthening external advisory committees to enhance external review of investment procedures and decisions;

Appointing a CRF compliance officer with independent reporting powers to ensure policies and procedures are followed; and

Reviewing and evaluating all existing consultant relationships.

Reforms already implemented by DiNapoli include:

The issuance of an Executive Order on Ethics to clearly define appropriate behavior by Comptroller staff;

The creation of the position of Inspector General;

The appointment of a Special Counsel for Ethics;

Mandatory ethics training for all staff, including the Comptroller. Investment staff received specifically designed training;

Implementation of a new placement agent review process to prevent conflicts of interest by placement agents and other paid intermediaries in investment transactions;

Review of all investment transactions by the Inspector General and the Special Counsel for Ethics;

Monthly reports on investment transactions completed by the CRF since February 2007, including placement agent and intermediary information where applicable, are posted on the Internet at: http://www.osc.state.ny.us/pension/disclosure.htm .

Initiated a comprehensive review of all CRF external consultants and the development of a more comprehensive pool on external consultants; and Partnered with the State Insurance Department to develop new regulations governing the operation of the CRF.

Full post as published by New York Public Personnel Law on March 11, 2009 (boomark / email).