Congress has rolled back “safe harbor” provisions allowing municipalities to manage pensions for private-sector workers without having to comply with strict fiduciary requirements. Mayor de Blasio and Public Advocate Letitia James were dismayed by the move, but New Yorkers should applaud it. New York City, which has long underfunded its pension obligations for city workers, is in no position to set itself up as a money manager for the general public.
The Facts You Need to Know
Systemic: New York City’s pension system is currently in danger of “operational failure.” Read more.
Options: Small businesses have other options for offering retirement plans to their employees. Read more.
Antique: Defined-benefit pension plans of the sort that New York City’s leadership wants to offer are a relic of the past and rarely offered outside the public sector. Read more.
“Washington has better alternatives than handing over much of the market for private pensions to local governments.”
The Past is Present
“New York City raises and spends an enormous amount of money. Even after the drastic budget cuts now planned, it will remain by far the most free-spending large city in the nation.”
And in other news...
“A Manhattan federal appeals court Tuesday overturned the 2015 corruption convictions of former New York state Senate Majority Leader Dean Skelos and his son, Adam Skelos.”