Bill Text: NY S07053 | 2011-2012 | General Assembly | Introduced
Bill Title: Requires the state comptroller to disclose information related to the management fees for the investment of the moneys in the New York state retirement fund.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-04-26 - REFERRED TO CIVIL SERVICE AND PENSIONS [S07053 Detail]
Download: New_York-2011-S07053-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7053
I N S E N A T E
April 26, 2012
___________
Introduced by Sen. KLEIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Civil Service and Pensions
AN ACT to amend the retirement and social security law, in relation to
annual disclosure by the state comptroller of the management fees
associated with the investment of the moneys in the New York state
retirement fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The opening paragraph of subdivision d of section 11 of the
2 retirement and social security law, as amended by chapter 169 of the
3 laws of 1994, is amended to read as follows:
4 d. The comptroller shall make an annual report showing the valuation
5 of the assets and liabilities of the funds of the retirement system, as
6 certified by the actuary, a statement of receipts and disbursements and
7 his or her recommendations in regard thereto. Such report shall be
8 published with and as a part of the annual report of the comptroller.
9 ALL REPORTS REQUIRED BY THIS SUBDIVISION AND SUBDIVISION D-ONE OF THIS
10 SECTION SHALL, UPON PUBLICATION, BE POSTED ON THE INTERNET WEBSITE OF
11 THE DEPARTMENT OF AUDIT AND CONTROL ACCESSIBLE TO THE GENERAL PUBLIC. In
12 addition to the above annual report, an actuarial report prepared in
13 accordance with generally recognized and accepted actuarial principles
14 and practices which are consistent with principles prescribed by the
15 Actuarial Standards Boards (ASB) and the Code of Professional Conduct
16 and Qualification Standards for Public Statements of Actuarial Opinion
17 of the American Academy of Actuaries, shall be published on or before
18 October fifteenth of each fiscal year to include:
19 S 2. Section 11 of the retirement and social security law is amended
20 by adding a new subdivision d-1 to read as follows:
21 D-1. THE ANNUAL REPORT PROVIDED FOR IN SUBDIVISION D OF THIS SECTION
22 SHALL DISCLOSE THE GROSS EXPENSE RATIO AND THE NAME OF EACH PRIMARY FUND
23 MANAGER.
24 1. SUCH DISCLOSURE SHALL IDENTIFY:
25 (I) THE NAME AND ADDRESS OF EACH FUND MANAGER;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14986-02-2
S. 7053 2
1 (II) THE GROSS EXPENSE RATIO FOR EACH FUND THAT IS UNDER THE SUPER-
2 VISION OF SUCH FUND MANAGER;
3 (III) A BREAKDOWN OF THE GROSS EXPENSE RATIO FOR EACH FUND AND FOR THE
4 AGGREGATE OF ALL FUNDS, BY THE FEES, COMMISSIONS, AND EXPENSES CHARGED
5 BY SUCH FUND MANAGER, FOR ITEMS INCLUDING, BUT NOT LIMITED TO MANAGE-
6 MENT, BROKERAGE, INCENTIVE, PERFORMANCE OR ADMINISTRATIVE FEES; EQUITY
7 COMMISSIONS; AND OTHER EXPENSES RELATED TO THE MANAGEMENT OF SUCH FUND.
8 SUCH BREAKDOWN OF FEES, COMMISSIONS AND EXPENSES SHALL BE EXPRESSED IN
9 MONETARY TERMS AND AS A PERCENTAGE OF THE ASSET BEING MANAGED BY SUCH
10 FUND MANAGER AND BY THE AGGREGATE OF ALL FUND MANAGERS;
11 (IV) THE VALUE OF THE ASSETS ADMINISTERED BY SUCH FUND MANAGER AND BY
12 THE AGGREGATE OF ALL FUND MANAGERS FOR THE RETIREMENT SYSTEM AS OF THE
13 BEGINNING OF THE FISCAL YEAR ON APRIL FIRST AND ON THE FOLLOWING MARCH
14 THIRTY-FIRST OF EACH YEAR; AND
15 (V) THE AVERAGE ANNUAL NET RATE OF RETURN, TO THE NEW YORK STATE
16 RETIREMENT FUND, OF EACH FUND MANAGED BY A FUND MANAGER AND OF ALL FUNDS
17 MANAGED BY FUND MANAGERS FROM ITS INCEPTION DATE, THE AVERAGE ANNUAL
18 RETURN RATE, AND AVERAGE ANNUAL RETURN RATE OVER THE COURSE OF THREE,
19 FIVE, AND TEN YEARS, WHEN APPLICABLE.
20 2. TO BETTER REFLECT AND COMPARE THE RISK AND VOLATILITY OF EACH FUND
21 ASSET BEING MANAGED WITH THE CORRESPONDING GROSS MANAGEMENT FEES BEING
22 CHARGED TO MANAGE SUCH FUND, THE DISCLOSURE OF SUCH FEES SHALL BE ORGAN-
23 IZED BY THE TYPE OF ASSET OR FUND BEING MANAGED FOR THE NEW YORK STATE
24 RETIREMENT FUND (BOTH NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
25 SYSTEM AND THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT
26 SYSTEM). SUCH BREAK DOWN OF FUND OR ASSET TYPE MAY INCLUDE, BUT NOT BE
27 LIMITED TO:
28 (I) DOMESTIC EQUITY MARKETS;
29 (II) INTERNATIONAL EQUITY MARKETS,
30 (III) BLENDED DOMESTIC AND INTERNATIONAL EQUITY MARKETS;
31 (IV) FIXED INCOME PORTFOLIOS; AND
32 (V) REAL ESTATE PROFILES; AND
33 (VI) ALTERNATIVE INVESTMENT PORTFOLIOS, SUCH AS PRIVATE EQUITY PORTFO-
34 LIOS, GREEN STRATEGIC INVESTMENT PROGRAMS, NEW YORK STATE MORTGAGE-PASS
35 THROUGH OR AFFORDABLE HOUSING LOAN PROGRAMS, NEW YORK EQUITY REAL ESTATE
36 INVESTMENTS, OR OTHER SUCH INVESTMENT PROGRAMS THAT INVEST OR RETAIN
37 ASSETS RELATED TO INVESTMENTS IN NEW YORK STATE.
38 3. FOR THE PURPOSES OF THIS SUBDIVISION:
39 (I) "FUND" SHALL MEAN AN INDIVIDUAL ASSET, INVESTMENT, FUND, PORTFO-
40 LIO, OR CONSORTIUM OF ASSETS THAT IS MANAGED BY A FUND MANAGER.
41 (II) "FUND MANAGER" SHALL MEAN THE PRIMARY FUND MANAGER, FIRM, BROKER,
42 CONSULTANT, CONSORTIUM, OR OTHER ENTITY THAT IS ASSIGNED OR HAS
43 CONTRACTED WITH THE STATE COMPTROLLER TO ADMINISTER, OPERATE, OR MANAGE
44 AN INDIVIDUAL INVESTMENT, FUND, PORTFOLIO, OR CONSORTIUM OF ASSETS THAT
45 IS CONTAINED IN THE RETIREMENT ASSET OR INVESTMENT PORTFOLIO OF THE NEW
46 YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK STATE
47 AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM.
48 (III) "GROSS EXPENSE RATIO" SHALL MEAN THE RATIO OF THE GROSS MANAGE-
49 MENT FEES DIVIDED BY THE VALUE OF THE FUND THAT IS BEING MANAGED BY SUCH
50 FUND MANAGER.
51 (IV) "GROSS MANAGEMENT FEE" SHALL INCLUDE ALL FEES, COMMISSIONS, OR
52 EXPENSES COLLECTED OR CHARGED BY A FUND MANAGER TO MANAGE, OPERATE OR
53 ADMINISTER A FUND ON BEHALF OF OR FOR THE BENEFIT OF THE NEW YORK STATE
54 RETIREMENT FUND, INCLUDING, BUT NOT LIMITED TO MANAGEMENT, BROKERAGE,
55 INCENTIVE, PERFORMANCE, OR ADMINISTRATIVE FEES; EQUITY, STOCK OR OTHER
S. 7053 3
1 COMMISSIONS; ADMINISTRATIVE EXPENSES, OR OTHER EXPENSES CHARGED THAT
2 RELATE TO THE MANAGEMENT, OPERATION, OR ADMINISTRATION OF SUCH FUND.
3 S 3. Subdivision d of section 311 of the retirement and social securi-
4 ty law, as added by chapter 1000 of the laws of 1966, is amended to read
5 as follows:
6 d. The comptroller shall make an annual report showing the valuation
7 of the assets and liabilities of the funds of the [policemen's and fire-
8 men's] retirement system, as certified by the actuary, a statement of
9 receipts and disbursements and his recommendations in regard thereto.
10 Such report shall be published with and as a part of the annual report
11 of the comptroller. ALL REPORTS REQUIRED BY THIS SUBDIVISION AND SUBDI-
12 VISION D-ONE OF THIS SECTION SHALL, UPON PUBLICATION, BE POSTED ON THE
13 INTERNET WEBSITE OF THE DEPARTMENT OF AUDIT AND CONTROL ACCESSIBLE TO
14 THE GENERAL PUBLIC.
15 S 4. Section 311 of the retirement and social security law is amended
16 by adding a new subdivision d-1 to read as follows:
17 D-1. THE ANNUAL REPORT PROVIDED FOR IN SUBDIVISION D OF THIS SECTION
18 SHALL DISCLOSE THE GROSS EXPENSE RATIO AND THE NAME OF EACH PRIMARY FUND
19 MANAGER.
20 1. SUCH DISCLOSURE SHALL IDENTIFY:
21 (I) THE NAME AND ADDRESS OF EACH FUND MANAGER;
22 (II) THE GROSS EXPENSE RATIO FOR EACH FUND THAT IS UNDER THE SUPER-
23 VISION OF SUCH FUND MANAGER;
24 (III) A BREAKDOWN OF THE GROSS EXPENSE RATIO FOR EACH FUND AND FOR THE
25 AGGREGATE OF ALL FUNDS, BY THE FEES, COMMISSIONS, AND EXPENSES CHARGED
26 BY SUCH FUND MANAGER, FOR ITEMS INCLUDING, BUT NOT LIMITED TO MANAGE-
27 MENT, BROKERAGE, INCENTIVE, PERFORMANCE OR ADMINISTRATIVE FEES; EQUITY
28 COMMISSIONS; AND OTHER EXPENSES RELATED TO THE MANAGEMENT OF SUCH FUND.
29 SUCH BREAKDOWN OF FEES, COMMISSIONS AND EXPENSES SHALL BE EXPRESSED IN
30 MONETARY TERMS AND AS A PERCENTAGE OF THE ASSET BEING MANAGED BY SUCH
31 FUND MANAGER AND BY THE AGGREGATE OF ALL FUND MANAGERS;
32 (IV) THE VALUE OF THE ASSETS ADMINISTERED BY SUCH FUND MANAGER AND BY
33 THE AGGREGATE OF ALL FUND MANAGERS FOR THE RETIREMENT SYSTEM AS OF THE
34 BEGINNING OF THE FISCAL YEAR ON APRIL FIRST AND ON THE FOLLOWING MARCH-
35 THIRTY FIRST OF EACH YEAR; AND
36 (V) THE AVERAGE ANNUAL NET RATE OF RETURN, TO THE NEW YORK STATE
37 RETIREMENT FUND, OF EACH FUND MANAGED BY A FUND MANAGER AND OF ALL FUNDS
38 MANAGED BY FUND MANAGERS FROM ITS INCEPTION DATE, THE AVERAGE ANNUAL
39 RETURN RATE, AND AVERAGE ANNUAL RETURN RATE OVER THE COURSE OF THREE,
40 FIVE, AND TEN YEARS, WHEN APPLICABLE.
41 2. TO BETTER REFLECT AND COMPARE THE RISK AND VOLATILITY OF EACH FUND
42 ASSET BEING MANAGED WITH THE CORRESPONDING GROSS MANAGEMENT FEES BEING
43 CHARGED TO MANAGE SUCH FUND, THE DISCLOSURE OF SUCH FEES SHALL BE ORGAN-
44 IZED BY THE TYPE OF ASSET OR FUND BEING MANAGED FOR THE NEW YORK STATE
45 RETIREMENT FUND (BOTH NEW YORK STATE AND LOCAL EMPLOYEES' RETIREMENT
46 SYSTEM AND THE NEW YORK STATE AND LOCAL POLICE AND FIRE RETIREMENT
47 SYSTEM). SUCH BREAK DOWN OF FUND OR ASSET TYPE MAY INCLUDE, BUT NOT BE
48 LIMITED TO:
49 (I) DOMESTIC EQUITY MARKETS;
50 (II) INTERNATIONAL EQUITY MARKETS,
51 (III) BLENDED DOMESTIC AND INTERNATIONAL EQUITY MARKETS;
52 (IV) FIXED INCOME PORTFOLIOS; AND
53 (V) REAL ESTATE PROFILES; AND
54 (VI) ALTERNATIVE INVESTMENT PORTFOLIOS, SUCH AS PRIVATE EQUITY PORTFO-
55 LIOS, GREEN STRATEGIC INVESTMENT PROGRAMS, NEW YORK STATE MORTGAGE-PASS
56 THROUGH OR AFFORDABLE HOUSING LOAN PROGRAMS, NEW YORK EQUITY REAL ESTATE
S. 7053 4
1 INVESTMENTS, OR OTHER SUCH INVESTMENT PROGRAMS THAT INVEST OR RETAIN
2 ASSETS RELATED TO INVESTMENTS IN NEW YORK STATE.
3 3. FOR THE PURPOSES OF THIS SUBDIVISION:
4 (I) "FUND" SHALL MEAN AN INDIVIDUAL ASSET, INVESTMENT, FUND, PORTFO-
5 LIO, OR CONSORTIUM OF ASSETS THAT IS MANAGED BY A FUND MANAGER.
6 (II) "FUND MANAGER" SHALL MEAN THE PRIMARY FUND MANAGER, FIRM, BROKER,
7 CONSULTANT, CONSORTIUM, OR OTHER ENTITY THAT IS ASSIGNED OR HAS
8 CONTRACTED WITH THE STATE COMPTROLLER TO ADMINISTER, OPERATE, OR MANAGE
9 AN INDIVIDUAL INVESTMENT, FUND, PORTFOLIO, OR CONSORTIUM OF ASSETS THAT
10 IS CONTAINED IN THE RETIREMENT ASSET OR INVESTMENT PORTFOLIO OF THE NEW
11 YORK STATE AND LOCAL EMPLOYEES' RETIREMENT SYSTEM OR THE NEW YORK STATE
12 AND LOCAL POLICE AND FIRE RETIREMENT SYSTEM.
13 (III) "GROSS EXPENSE RATIO" SHALL MEAN THE RATIO OF THE GROSS MANAGE-
14 MENT FEES DIVIDED BY THE VALUE OF THE FUND THAT IS BEING MANAGED BY SUCH
15 FUND MANAGER.
16 (IV) "GROSS MANAGEMENT FEE" SHALL INCLUDE ALL FEES, COMMISSIONS, OR
17 EXPENSES COLLECTED OR CHARGED BY A FUND MANAGER TO MANAGE, OPERATE OR
18 ADMINISTER A FUND ON BEHALF OF OR FOR THE BENEFIT OF THE NEW YORK STATE
19 RETIREMENT FUND, INCLUDING, BUT NOT LIMITED TO MANAGEMENT, BROKERAGE,
20 INCENTIVE, PERFORMANCE, OR ADMINISTRATIVE FEES; EQUITY, STOCK OR OTHER
21 COMMISSIONS; ADMINISTRATIVE EXPENSES, OR OTHER EXPENSES CHARGED THAT
22 RELATE TO THE MANAGEMENT, OPERATION, OR ADMINISTRATION OF SUCH FUND.
23 S 5. This act shall take effect on the first of January next succeed-
24 ing the date on which it shall have become a law, and shall apply to
25 annual reports made after such date.
