Cuomo tapping pension funds?

[ex-commish 490]

It was reported in Lohud that Gov Cuomo wants to tap into the NYS pension fund to help finance the new Tappan Zee Bridge. Is this legal?

[Guest truck1234]

former Gov. tryed to tap into NYS pension before but former state comptrollers said no, so I think its up to them but not sure.

[demps121 39]

It is true the Gov Father did in fact raid the pension fund. The money was never returned if I remember correctly. There were negatiations at the time to make all tier 2 members the same as tier 1 as a settlement but that never happened.

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[islander 27]

This is fine, but much like when the NYC Police Pension Fund bailed out the city in the 70's (?) we should get a payment in return much like the variable supplement fund that city uniformed retirees get annually. I've been out of the city for ten years, but I believe it's a 12.5K Christmas gift service retirees get every year.

Of course mayor bloomturd has called it a "Christmas bonus" and has tried to take it away....smoke and mirrors for the media to try to turn "them"against "us" once again.

[helicopper 1,050]

The funds are controlled by the State Comptroller so I don't think it can just "be done" with the stroke of a Governor's pen.

Other states have gone down this road with terrible outcomes. I hope that it doesn't happen here.

[Guest truck1234]

NYS pension fund lost 7.5% last couple of months 147 bill to 135 bill.

[Bnechis 3,961]

At least 4 previous Governors wanted to use the pension fund to "solve" the governor’s budget issues. Each time the Comptroller has said that under the state constitution the only legal way for the Governor to access the money was for him to borrow it at the same interest rate any other entity borrowing money would be charged. Once that was on the table, the governors tend to back down.

I also recall 1 comptroller who commented that anyone in the state would have standing to sue the governor if he just "took it" and since he swore to uphold the constitution of the state, it would be grounds for impeachment.

Now can the pension system invest in a new TZB....yes, as long as there’s a fair market return on the investment.

[wraftery 1,275]

Take my words to heart. Even if you think I am full of poop in my firefighting posts, this is the best advice I can give you...ever.

Now is the time for the YOUNGER Firefighters and Police Officers to watch that money like a mama bear guarding her cubs. If Gov. Cuomo (who is probably getting about eight government pensions) tries to take, borrow, rearrange, or touch your pension in any way be ready to pounce.

It is YOUR retirement he wants to play with. Your future is at risk. Take it personally because it is.

Your retirement will come sooner that you think...protect it!

[SOUSGT 357]

The funds are controlled by the State Comptroller so I don't think it can just "be done" with the stroke of a Governor's pen.

Other states have gone down this road with terrible outcomes. I hope that it doesn't happen here.

[/quote

Former state Comptroller H. Carl McCall, twice had to gone to court to block attempts by two governors ( Mario Cuomo and George Pataki), to raid the pension fund.

The state Comptroller is the sole trustee of the pension fund.

[FD828 77]

Just look how great New Jersey is doing because of the very same thing.

[efdcapt115 1,511]

http://www.lohud.com/article/20111123/NEWS05/111230320/Tappan-Zee-Bridge-funding

[antiquefirelt 994]

You should definitively heed the advice of the persons telling you to fight this in any way. Up here in Maine, previous governors raided pensions funds every time one of their pet projects didn't get funded directly. Now, especially in the last year, the Tea party and Heritage Policy Center, and new Governor have made a push to significantly change the pensions for retirees and those already vested in the system, due to what they call the failure of the state pension system and showing the cost to the taxpayers.

The taxpayers have essentially been turned against all state and municipal employees who are now seen as getting cushy pensions at a significant tax cost to them. The numbers don't lie, but the public doesn't care who created the mess, they just want to pay less, which can only be done by cutting benefits. Most firefighters and cops were lucky as we have separate pension funds within the system, and the municipal pension fund is 98% funded as it was not allowed to be raided, but the state employees and teachers (statewide Union) are in a real bind with a broke pension fund and angry taxpayers. Everyday in any newspapers' forum area you can read tons of anti-municipal/Union/state employee comments basically caused by exploitation of this issue.

Do not let them touch pension funds at any cost, people will forget who took and and why when faced with growing debt in later years.

[efdcapt115 1,511]

I was interested in the content of the article, am glad I was able to find it and get the link up here.

First: This is a discussion going on right now, and Tom DiNapoli our Trustee has taken no position on it.

Second: It reads like a structured loan arrangement, not a "pension raid." I think the Governor knows what happened when his father tried that.

Third: Back in the day, Carl McCall fought Mario Cuomo in court, and the absconded with funds WERE returned to the pension fund.

Forth: The 7.whatever percentage drop in the fund balance is a result of the fund being heavily invested, long in the stock market. The PREVIOUS quarter saw a return of nearly 18 percent.

The chief is right. Keep a watchful eye over what shenanigans they may attempt to pull up in Albany. But right now, this is nothing to be panicking about. The NYSPFRA keeps a VERY watchful eye on all things occurring in Albany. JOIN the RETIREES ASSOCIATION TODAY. Example: The ENTIRE Yonkers fire Dept. joined; every single member. There is an example all of you should take back to your locals at your monthly meetings and DEMAND.

[nfd2004 750]

Take my words to heart. Even if you think I am full of poop in my firefighting posts, this is the best advice I can give you...ever.

Now is the time for the YOUNGER Firefighters and Police Officers to watch that money like a mama bear guarding her cubs. If Gov. Cuomo (who is probably getting about eight government pensions) tries to take, borrow, rearrange, or touch your pension in any way be ready to pounce.

It is YOUR retirement he wants to play with. Your future is at risk. Take it personally because it is.

Your retirement will come sooner that you think...protect it!

I think these are some Great words of advice. I my own case, the City wanted to borrow from Our Pension Fund. We wouldn't let them do it and our pension fund is actually doing quite well, NO THANKS to the City. It is our own adminstrators that keep an eye on it, and insisted we keep it in our own pockets.

[ex-commish 490]

Thank you all for the input....very disturbing to see the games they try and play up there with money that doesn't belong to them...I didn't drag myself into where I work for the last 24 years to have some lunatic decide he wants to build a bridge with the money we worked for..

Edited November 26, 2011 by HFD219

[Fireman488 57]

DiNapoli: Pension Fund Remains Strong in Midst of Sluggish Economy

The New York State Common Retirement Fund (Fund) was valued at $133.8 billion

after Fund investments posted an estimated negative 7.48 percent rate of return

through September 30, 2011, the end of the Fund’s second fiscal quarter,

according to New York State Comptroller Thomas P. DiNapoli.

“Like almost

all investors, the Fund has been affected by the sluggish economy and increased

volatility in the markets,” DiNapoli said. “The Fund remains one of the

strongest in the U.S. and our diversified portfolio will keep it secure and

poised for strong returns in the coming months.”

The Fund has 36.1

percent of its assets invested in publicly traded domestic equities and 15.1

percent in international equities. The remaining Fund

assets by allocation are invested in cash, bonds and mortgages (28.6 percent),

private equity (10.8 percent), real estate (6.5 percent), absolute return (2.5

percent) and opportunistic strategies (0.4 percent).

DiNapoli initiated

quarterly performance reporting by the Fund as part of his on-going efforts to

increase accountability and transparency. The Fund, which exists to provide

benefits to more than one million retirees, beneficiaries and active employees,

will close its current fiscal year on March 31, 2012.

[NWFDMedic 58]

My parents are both recipients in the NYS Pension fund now and I have no problem with them borrowing against it IF it is structured as a loan. In that case, it's not unlike any other investment the fund makes, it's just like a government bond (which is typically low interest due to the government's credit rating and almost guaranteed return). However, those with a vested interest have to keep a close eye on this story. The federal government essentially raided social security several times and still to this day has not paid back all that was due and you can't let the state do the same to the pension fund.

It does seem ironic that Cuomo instituted the 2% cap but is trying "creative" funding methods to keep his investments under the 2% cap. If he wanted to make some money for this investment, he should turn the Bridge Authority over to the Thruway Authority, eliminating the dual bureaucracies maintained by these 2 organizations. Then, he could turn I-84 back over to the NYSTA and install tolls on the road at both state lines. The way the highway is structured, it doesn't make sense install individual exit tolls (only a 70 mile span in NYS and exits close together) but if they got tolls from the large amount of interstate traffic (especially the truck traffic), they'd have plenty of revenue to work with to build a bridge.

[efdcapt115 1,511]

Thank you all for the input....very disturbing to see the games they try and play up there with money that doesn't belong to them...I didn't drag myself into where I work for the last 24 years to have some lunatic decide he wants to build a bridge with the money we worked for..

Roger that.

But I'm going to repeat this; the most proactive thing any individual cop or firefighter can do today is join the New York State Police and Fire Retirees Association. Dues are a mere $30 a year. We have representation in Albany, and NYSPFRA works tirelessly for ALL of us, retired, or going to be someday.