NYC Teachers' bans placement agents

NYC comptroller William Thompson said yesterday NYCTRS' trustees decided to suspend making new commitments with private equity funds which use placement agents or other compensated intermediaries.

The New York City Employees' Retirement System, Fire Department Pension Fund, and Police Pension Fund have previously passed similar resolutions. (Globalpensions.com, May 18, 2009)

The fifth and remaining NYC pension fund - the Board of Education Retirement System - is expected to vote on the matter today. The five NYC pension funds have combined assets of more than US$77.1bn as of March 31. TRS held $26.8bn in assets as of that date.

NY attorney general Andrew Cuomo said: "The public pension fund industry must rid itself of pay-to-play and other unethical practices. Hopefully, the NYSTRS announcement today will serve as another building block in our effort to promote needed reforms like banning the use of placement agents and eliminating campaign contributions to those who make or influence pension fund investment decisions."