NY police scheme bans placement agents

Last week, the New York City Employees' Retirement System (NYCERS) took the same decision, following a specific request by comptroller Thompson in response to investigations on placement agents connected to the NYC retirement plans' investments (www.globalpensions.com: 29/04/09).

Two weeks ago, Thompson asked the New York State attorney general to look into whether the city retirement systems were "intentionally misled or deceived" as to the identities of any placement agents involved in an investment by the city systems in the Quadrangle Group.

In addition, the New York State comptroller announced a ban on placement agents last month and other large public pension funds across the nation are considering similar actions.

In particular, the California Public Employees' Retirement System (CalPERS) is planning to discuss at its Policy Subcommittee on 8 May a proposed policy report on the use of placement agents.

Thompson said he planned to ask the remaining NYC Pension Funds to approve a similar suspension in the coming weeks.

In addition to NYCPPF and NYCERS, the other funds are the Teachers' Retirement System of New York, New York City Fire Department Pension Fund, and Board of Education Retirement System.