Who owns public pension fund assets? New York Supreme Court ruling.
Government Finance Review › Vol. 9 Nbr. 3, June 1993
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Summary
The legislature of the State of New York tried to mandate a reduction in employer contributions to the state pension system known as Common Retirement Fund. The Supreme Court ruled against the legislature, invoking the difference between financial reporting standards and equitable funding obligations as defined by the Government Accounting Standards Board.The attempt of New York's legislature to apply a new actuarial method to lower employer contributions in time of a budgetary crisis clearly violated provisions of GASB's regulations on the disclosure of information related to the management of the pension fund.
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Who owns public pension fund assets? New York Supreme Court ruling.
Pension funds of public employees have become increasingly visible in recent years with memberships currently estimated at more than 15 million people. These funds provide retirement benefits for state and local government workers, school teachers, college professors, police officers, firefighters and judges, among others. The importance of public pension funds for their members' financial security in retirement cannot be understated. In most states, the public pension is a supplement to Social Security; however, because of the uncertainty attached to the Social Security system, public employees have become more reliant, psychologically if not in fact financially, upon their retirement income from public pension funds.
In those states where public employees do not pay into the Social Security system, the dependency on public pension funds is even more acute. For public employees everywhere who are concerned about the financial in...See the full content of this document
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