Post by Logan on Jan 26, 2016 14:28:53 GMT -6
New York City’s Pension System in Danger of ‘Operational Failure,’ Report Says
New York City’s pension system, which encompasses $160 billion in retirement funds, is rife with problems that leave it vulnerable to an “operational failure,” according to an independent report commissioned by the city comptroller’s office.
The report found that the city’s retirement system, the fourth largest in the country, needs additional resources, is understaffed and lacks many basic tools required to gain insight into the complicated risk embedded in its investments. Some managers rely on fax machines to send and receive vital information.
In some cases, the system, known as the Bureau of Asset Management, does not even have the internal controls necessary to ensure individuals cannot circumvent compliance, the report concluded.
“Operational risk is very high and an operational failure is likely,” the 398-page report, by Funston Advisory Services of Michigan, said.
Read more: www.nytimes.com/2016/01/27/nyregion/new-york-citys-pension-system-in-danger-of-operational-failure-report-says.html
New York City’s pension system, which encompasses $160 billion in retirement funds, is rife with problems that leave it vulnerable to an “operational failure,” according to an independent report commissioned by the city comptroller’s office.
The report found that the city’s retirement system, the fourth largest in the country, needs additional resources, is understaffed and lacks many basic tools required to gain insight into the complicated risk embedded in its investments. Some managers rely on fax machines to send and receive vital information.
In some cases, the system, known as the Bureau of Asset Management, does not even have the internal controls necessary to ensure individuals cannot circumvent compliance, the report concluded.
“Operational risk is very high and an operational failure is likely,” the 398-page report, by Funston Advisory Services of Michigan, said.
Read more: www.nytimes.com/2016/01/27/nyregion/new-york-citys-pension-system-in-danger-of-operational-failure-report-says.html