New York
Overview
There are two state retirement systems in New York: the New York State & Local Retirement System (NYSLRS) and the New York State Teachers’ Retirement System (NYSTRS).
NYSLRS provides pension and other benefits for state employees and employees of political subdivisions outside of New York City that have elected to participate. The New York State comptroller is sole trustee of NYSLRS assets, which are invested in the New York State Common Fund.
NYSTRS provides pension and other benefits for teachers at public schools, state universities, community colleges, and charter schools outside of New York City.
All local retirement systems in New York are sponsored by New York City. These are the NYC Teachers’ Retirement System; the NYC Police Pension Fund; the NYC Fire Pension Fund; the NYC Employees’ Retirement System; and the NYC Board of Education Retirement System. The NYC comptroller is sole trustee for these city pension funds. Combined assets of these funds is approximately $285 billion, which are invested by the city comptroller, who is sole trustee.
Plan Design
Defined benefit plans serve as the primary retirement benefit for substantially all public employees in New York State.
According to the US Government Accountability Office, 99 percent of employees of state and local government in New York State participate in Social Security.
Authorizing Statutes and Board Structure
New York Retirement & Social Security Law Section 11 prescribes the role of New York state comptroller with respect to retirement plans.
New York Retirement & Social Security Law Section 423 requires the comptroller to appoint an investment committee to advise the state comptroller on investment of the state common fund.
New York State Education Code Section 504 establishes the board of the New York State Teachers’ Retirement System.
Details regarding the composition of these and other retirement boards is accessible via the Retirement and Investment Board Characteristics search tool located at the bottom of this page.
Fiduciary Duty/Prudence Standard
New York State regulations specify the state comptroller’s fiduciary duties as they relate to investment of the Common Fund:
The Comptroller is a fiduciary and as such shall act solely in the interests of the members and beneficiaries of the retirement system. At all times the Comptroller shall perform his or her responsibilities with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims.
According to a 2013 report by Funston Advisory Services:
The Comptroller has been provided with full and sole fiduciary responsibility for the assets of the Common Retirement System under RSSL Article 9 and under DFS Regulation No. 85, 11 NYCRR 136-2.3. Further, 11 NYCRR 136-2.3, 2.4, 2.5, 2.6 and 2.7 provide definition of the Comptroller’s fiduciary responsibilities, powers of delegation, and requirements for the investment policy statement, committees, investment managers, reporting, transparency, internal audit, and compliance. RSSL sections 13, 177, 313 and 420 all contain various direction for the Comptroller regarding management of the Fund, including allowable investments (including a basket clause provision), and preferential investing programs such as in-state venture capital and MWBE manager strategies.
Funston Advisory Services LLC, Fiduciary and Conflict of Interest Review of the New York State Common Retirement Fund, Final Report February 4, 2013
New York State Codes, Rules and Regulations, Title 11, Chapter IV prescribes the fiduciary duty of the NYSTRS board:
11 CRR-NY 136-1.6(a): prudent person standard
(a) The administrative heads [i.e., the board] are fiduciaries and as such shall act solely in the interests of the members and beneficiaries of the systems they administer. They shall perform their responsibilities in a manner consistent with those of a reasonably prudent person exercising care, skill and caution.
11 CRR-NY 136-1.6(h): prohibited transactions rule
(h) The administrative head, and its consultants, agents and employees, shall not:
(1) deal with the assets of a system for their own account;
(2) act in any capacity in any transaction involving a system on behalf of a party whose interests are adverse to a system or its members;
(3) receive any consideration from any party in connection with a transaction involving a system's funds or its assets; or
(4) own or maintain any indicia of ownership or personal interest in any assets of a system other than an interest in the system as a member or beneficiary.
Legal Protections of Retirement Benefits
After July 1, 1940, membership in any pension or retirement system of the state or of a civil division is a contractual relationship, the benefits of which shall not be diminished or impaired. NY CONST., Article V, §7. Public Employees Federation, AFL CIO v. Cuomo, 467 N.E.2d 236 (NY Ct. App 1984) (reduction of benefits payable on death of state employees hired on or before July 1, 1976, was an unconstitutional impairment of contract since the death benefit was a benefit of membership in retirement system and it was rendered contractual regardless if specific funds were designated for death benefit); but see Ballentine v. Koch, 674 N.E.2d 292 (NY Ct. App. 1996) (by defining Police Officer's Variable Supplements Fund (POVSF) to not be a pension or retirement system, and by reserving to the legislature the unilateral right to amend or repeal POVSF statutory provisions, the legislation established a benefit scheme expressly outside the purview of the pension impairment clause of the State Constitution). (NY CONST., Article V, §7) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits
See also the following search tools:
Retirement System Account Interest Policies | Economic Actuarial Assumptions | Retirement and Investment Board Characteristics |
Information about interest rates applied to account balances of inactive plan participants | Assumed rates of investment return and inflation | Composition and characteristics of public retirement and investment oversight boards |
Mortality Assumptions | Plan Design Features | Post-retirement Employment Policies |
Public retirement system actuarial assumptions for mortality | Numerous elements of retirement plan design | Policies governing return-to-work for retirement system annuitants |
More Data
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Population (2023) 19,571,216 |
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New York public pension statistics, per U.S. Census Bureau as of FY 2023 |
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Assets |
$647.7 billion |
Active Members |
1,158,435 |
Annuitants |
1,053,970 |
Benefits Paid |
$40.6 billion |
Employee Contributions |
$2.2 billion |
Employer Contributions |
$16.9 billion |
Systems |
Two state systems that account for 59 percent of public pension assets and 66 percent of public pension membership in New York State. The sole locally sponsored retirement systems are the five that are sponsored by New York City. |