NYS Common Retirement Fund Reports First Quarter Results

Investment Performance Strong but DiNapoli Urges Caution

  The New York State Common Retirement Fund’s (Fund) estimated return in the first quarter of the State Fiscal Year (SFY) 2019-20 was 3.38 percent for the three-month period ending June 30, 2019, raising its estimated value to $216.2 billion, according to New York State Comptroller Thomas P. DiNapoli.

“The Fund is off to a strong start this fiscal year,” DiNapoli said. “Markets have been volatile, however, warranting caution from investors. Longer term, we continue to take a conservative approach and closely examine our seven percent target rate of return to determine if it is due for an adjustment as a matter of prudent fiscal management. Our constant goal is to ensure that New York state’s pension fund remains one of the nation’s strongest and best funded, providing state and municipal employees with retirement security for generations to come.”

The Fund's estimated value reflects benefits of $2.89 billion paid out during the quarter. Its audited value as of the March 31, 2019 close of last fiscal year was $210.5 billion.

As of June 30, 2019, the Fund had 38.6 percent of its assets invested in publicly traded domestic equities and 15.3 percent in international public equities. The remaining Fund assets by allocation are invested in cash, bonds and mortgages (24.8 percent), private equity (9.2 percent), real estate and real assets (8.5 percent) and absolute return strategies and opportunistic alternatives (3.6 percent).

In June, the Pew Charitable Trusts once again ranked the Fund one of the best funded in the nation. Only eight states had a funded ratio of 90 percent or higher based on 2017 data, with New York ranked fourth behind Wisconsin, South Dakota and Tennessee.

DiNapoli initiated quarterly investment performance reporting in 2009 as part of his ongoing efforts to increase accountability and transparency. Quarterly rates of return provide a snapshot of performance over three months and reflect a fraction of the Fund’s annual investment return. 

About the New York State Common Retirement Fund 

The New York State Common Retirement Fund is the third largest public pension fund in the United States. The Fund holds and invests the assets of the New York State and Local Retirement System on behalf of more than one million state and local government employees and retirees and their beneficiaries. The Fund has consistently been ranked as one of the best managed and best funded plans in the nation. The Fund's fiscal year ends March 31.

MAYOR DE BLASIO PUTS INTO EFFECT FOR-HIRE VEHICLE CRUISING CAP AND EXTENDS LICENSE CAP

License cap extension & cruising cap were approved by TLC on August 7; the Mayor yesterday signed finding of substantial need, putting caps into effect Monday, August 12

  Mayor Bill de Blasio took steps to quickly put into effect a historic set of Taxi and Limousine Commission regulations that will combat congestion in Manhattan by requiring high-volume for-hire vehicle app companies to more efficiently manage their fleets.  These rules will preserve a valuable service for New Yorkers while providing better balance between for-hire services and other road users. The new rules were approved by the TLC on August 7, and Mayor de Blasio yesterday signed a finding of substantial need to expedite their publication in the City Record, as required by the City’s Administrative Procedures Act (CAPA). See here for the one page document. The rules will be in effect on Monday, August 12.

“For too long, the status quo has been gamed by companies who flood our streets, depress driver incomes and make it harder for the rest of us to get around,” said Mayor de Blasio. “Those days are over. The era of app companies’ exploitation of their drivers and our streets has come to an end. We will hold these companies accountable, and in doing so, we will reduce congestion and help drivers make ends meet.”

“These historic regulations show that just as app companies have used technology to bring consumers service in new ways, cities can challenge companies to use this same technology to combat congestion and climate change,” saidActing TLC Commissioner Bill Heinzen.  “Combined with TLC’s landmark driver income protections, which are providing 85,000 app drivers with an average $500 extra per month, these rules confirm New York City’s support for workers is not just words, but actions.”             

The regulations are the culmination of an intensive study by the TLC and the NYC Department of Transportation, which found that 30% of Manhattan Core traffic is for-hire services (FHVs), most of which work with apps like Uber and Lyft, and that these vehicles are cruising empty 41% of the time.  The FHV fleet had tripled from under 40,000 vehicles in 2010 to over 120,000 vehicles in 2019, and greenhouse gas emissions from TLC-regulated fleets had grown 62% from 2013 to 2018.  The study took place following August 2018 City legislation that paused the issuance of new FHV licenses while the City studied the problem and evaluated long-term policy solutions.

These rules give large app companies one year to bring their Manhattan Core cruising time – when drivers are working but not earning money – down to 31% during the peak hours.  The regulations also continue the pause on issuance of new FHV licenses for one year, with exceptions for wheelchair accessible vehicles and fully electric vehicles.  As a result of these rules, FHV-related traffic congestion below 96th Street during rush hours is projected to decrease by more than 20%. 

Before the cap on non-accessible for-hire vehicles went into effect last summer, about 2,000 new vehicles were hitting the streets every month.  An oversaturation of cars has meant a greater dilution of income and opportunity, and there has been a large pool of drivers that are eager for more work.  Since the cap began, daily app trips have risen in the outer boroughs and Northern Manhattan, and wait times have dropped in neighborhoods across the city – with the largest decreases in waits in the Bronx and Staten Island.

The regulations include twice yearly reviews and public reporting.  The TLC will evaluate congestion, driver pay, and passenger service levels and can adjust policies as needed.

Benefits of the new policy:

·         More than 20% decline in FHV traffic below 96th Street during rush hours

·         Faster bus speeds in Manhattan

·         More room for other road users, such as pedestrians and cyclists

·         Less driving means fewer crash opportunities

·         Further incentivizes growth in the wheelchair accessible FHV fleet, which has risen from 226 in August 2018 to 761 now

“For a workforce in an unprecedented crisis of poverty and debt, the vehicle cap has been lifesaving. It's at the heart of our unity campaign for yellow, green, livery, black car, and Uber and Lyft drivers to finally come out of poverty wages by each earning more fares and burning less fuel. We still have so much work ahead of us, but as we've always said, without the cap, it would be impossible for drivers to earn more or to stabilize those earnings. We applaud the Mayor's actions, and thank the TLC and DOT for their steadfast work,” said Bhairavi Desai, Executive Director of the 21,000-member New York Taxi Workers Alliance.

News From Congressman Eliot Engel

ENGEL STATEMENT FOLLOWING VISIT TO GUATEMALA

  Representative Eliot L. Engel, Chairman of the House Committee on Foreign Affairs, made the following statement following his visit to Guatemala as part of a congressional delegation:

“I joined Speaker Pelosi and a bipartisan delegation in Guatemala where we focused on the root causes that drive child and family migration to the United States. It continues to be clear to me that U.S. assistance to the Northern Triangle has been transformative and must be immediately restored.

“It was particularly moving to meet with the staff of the International Commission against Impunity in Guatemala (CICIG) whose work I have supported since the very start because of its efforts to fight corruption. While I am disappointed that CICIG’s mandate is not being renewed, I urge the Guatemalan government and judicial sector to ensure that the Commission’s efforts to end impunity continue in the months and years ahead.

“I am pleased by Guatemala’s preparations for Sunday’s presidential run-off and urge a free, fair process to move forward.

“The future of Guatemala’s democracy will depend on a commitment to fighting corruption and respecting the rule of law. Ultimately, this how we ensure that children and families are not forced to make the dangerous trek north—not by cutting off U.S. assistance.”

Background

Earlier this year, Chairman Engel introduced the United States-Northern Triangle Enhanced Engagement Act (H.R. 2615) to restore foreign assistance to Guatemala, El Salvador, and Honduras. The legislation passed the House on July 15.

Engel Introduces Legislation to Protect Seniors from Wasteful Drug Spending

  Congressman Eliot L. Engel introduced legislation today to protect Medicare beneficiaries from wasteful spending on excessively large single-use drug vials.

Each year, Medicare and private health plans waste about $3 billion on cancer medications that are packaged in oversized vials. This packaging gives patients far more medication than they need, forcing seniors and others to pay for unnecessary drugs. Many of these same medications are sold abroad in smaller vials, producing savings for individuals and their health care systems. The Recovering Excessive Funds for Unused and Needless Drugs (REFUND) Act would enable seniors and the Medicare program to recoup money wasted on oversized drug vials.

“There are about 100,000 NY-16 constituents with Medicare drug coverage, many of whom live on fixed incomes,” Rep. Engel said. “The reality is that many of these seniors do not have money lying around, after paying for groceries and rent, to spend on extra medication that will ultimately be tossed in the trash. The REFUND Act will put money back in the pockets of seniors and beneficiaries while improving Medicare’s solvency so that it is available for our children and grandchildren.”

The REFUND Act builds on Congressman Engel’s work to improve seniors’ programs. In June 2019, he introduced the Guaranteed 3 Percent COLA for Seniors Act, H.R. 3389, which would guarantee every seniora reasonable Social Security cost-of-living adjustment and an increase of at least three percent.

Congressman Engel is a top member on the House Energy and Commerce Committee’s Health Subcommittee.

Brooklyn Man Charged with Stealing More than $80,000 from New York State Assemblyman’s Campaign Account

Defendant Allegedly Filed False Campaign Disclosure Reports to Conceal His Thefts

  A criminal complaint was unsealed in federal court in Brooklyn charging Maruf Alam with wire fraud in connection with his theft of more than $80,000 in campaign contributions from a New York State Assemblyman’s campaign account.  Alam was arrested this morning, made his initial appearance this afternoon before United States Magistrate Judge Sanket J. Bulsara, and was released on a $100,000 bond.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

“As alleged, Alam was caught red-handed using a New York State Assemblyman’s campaign account as his personal piggy bank,” stated United States Attorney Donoghue.  “Alam betrayed the trust placed in him to act honestly as the treasurer for the account, and then attempted to cover up his crime by filing false disclosure reports for years.  Today’s arrest makes clear that dishonest public employees will face the consequences of their crimes and be prosecuted to the fullest extent of the law.”  Mr. Donoghue extended his grateful appreciation to the enforcement staff at the New York State Board of Elections (NYSBOE) for their assistance during the investigation.

“As alleged, Alam violated the trust of an elected New York State Assemblyman by brazenly diverting more than $80,000 in campaign contributions to his own personal accounts,” stated FBI Assistant Director-in-Charge Sweeney.  “Alam went to great lengths to conceal his fraud, including traveling to China to illicitly withdraw funds from a campaign account and then filing false disclosure reports with the New York State Board of Elections.  Today’s action should serve as a reminder that the FBI will continue to bring to justice those who aim to exploit positions of public trust to satisfy their selfish greed.”

According to the complaint, since 2008 Alam was employed in various capacities, including chief of staff, for a New York State Assemblyman.  Alam also acted on a voluntary basis as the treasurer for the Assemblyman’s campaign account, and was responsible for filing periodic disclosure reports with the NYSBOE to disclose contributions received and expenditures made by the Assemblyman’s campaign committee.  From approximately January 2012 to January 2019, Alam allegedly stole campaign funds that had been contributed to support the candidacy of the Assemblyman, and deposited the cash into his personal account.  For example, campaign account records disclose that on November 9, 2015 and November 13, 2015, two ATM withdrawals from the campaign account were made at two locations in China.  Travel records reflect that Alam traveled to China on November 5, 2015, and returned to the United States on November 19, 2015.  In total, during the relevant time period, the Assemblyman’s campaign account records reflect approximately $80,000 in cash withdrawals by Alam that were not reported to NYSBOE.  

The charges in the complaint are allegations and the defendant is presumed innocent unless and until proven guilty.  If convicted, Alam faces a statutory maximum of 20 years’ imprisonment. 

Statement from Attorney General William P. Barr on the Death of Jeffrey Epstein

Attorney General William P. Barr issued the following statement:

“I was appalled to learn that Jeffrey Epstein was found dead early this morning from an apparent suicide while in federal custody. Mr. Epstein’s death raises serious questions that must be answered. In addition to the FBI’s investigation, I have consulted with the Inspector General who is opening an investigation into the circumstances of Mr. Epstein’s death."

Statement Of Manhattan U.S. Attorney On The Death Of Defendant Jeffrey Epstein

  Manhattan U.S. Attorney Geoffrey S. Berman said:  “Earlier this morning, the Manhattan Correctional Center confirmed that Jeffrey Epstein, who faced charges brought by this Office of engaging in the sex trafficking of minors, had been found unresponsive in his cell and was pronounced dead shortly thereafter of an apparent suicide.  Today’s events are disturbing, and we are deeply aware of their potential to present yet another hurdle to giving Epstein’s many victims their day in Court. To those brave young women who have already come forward and to the many others who have yet to do so, let me reiterate that we remain committed to standing for you, and our investigation of the conduct charged in the Indictment – which included a conspiracy count – remains ongoing.

We continue to urge anyone who feels they may be a victim or have information related to the conduct in this case to please contact 1-800- CALL FBI.”

Comptroller Stringer: Dozens of LIRR Stations in Brooklyn and Queens are Inaccessible and Falling into Disrepair

Comptroller pens letter to LIRR expressing concerns about several station rehabilitation and accessibility projects that are over budget, behind schedule, and deficient

Requests information on the reduced-fare Atlantic Ticket pilot and whether local LIRR stations are being upgraded to accommodate increased ridership

The City was required to pay the Metropolitan Transportation Authority $97.4 million in FY19 for the operation and maintenance of local commuter rail stations

  Spotlighting deteriorating conditions and inaccessibility challenges that inhibit seniors, young children, and people with disabilities at Long Island Rail Road (LIRR) stations in Brooklyn and Queens, New York City Comptroller Scott M. Stringer sent a letter to LIRR President Phil Eng seeking a comprehensive timeline for the agency to meet its commitment to comply with the Americans with Disabilities Act (ADA) upgrades at 18 Queens and 2 Brooklyn stations. The letter also requested a concrete roadmap regarding station rehabilitation plans at Hollis and Hunters Point Avenue, the construction of new stations in Elmhurst and Sunnyside, and the installation of elevators at Murray Hill, Nostrand Avenue, and St. Albans. Comptroller Stringer’s office has received frequent complaints from local residents and passengers about deteriorating conditions at these stations including old and faded signage, malfunctioning ticket machines, excessive litter, unsanitary conditions, and broken platform surfaces, as well as a lack of elevators or ramps.

“Maintaining and providing equitable access to our public transit system is critical to building a city that works for every New Yorker. The LIRR stations in Queens and Brooklyn should be providing fast, frequent, reliable, and affordable transit to hundreds of thousands of New York City residents living beyond the subway’s reach. Instead, far too many are underutilized, inaccessible, deteriorating, and locked behind an exorbitant pay wall,” said New York City Comptroller Scott M. Stringer. “This issue isn’t just about basic maintenance – it’s an issue of fairness. Behind every motionless elevator or deteriorating station there are New Yorkers who can’t travel. There are people who can’t make it to school or the doctor or a job interview. We need to improve mobility and job access throughout the five boroughs, and that means we need to invest in our commuter rail stations, dramatically reduce in-city fares on the LIRR and Metro-North, allow free transfers to the subway and bus, and increase off-peak frequencies.

To read Comptroller Stringer’s letter to LIRR, click here.

To read Comptroller Stringer’s comprehensive plan for opening up the commuter rail system within New York City, (October 2018) click here.

State Senator Alessandra Biaggi visits Evergreen Garden

  State Senator Alessandra Biaggi visited Evergreen Gardens in the Soundview section of her district Friday Night to hear what residents had to say. Local political gadfly Michael Beltzer who went around with Senator Biaggi door to door was thanked as Senator Biaggi heard tenants problems. We however saw several problems such as the broken ceiling tile and what appears to be mold around the openings a few feet away from where Senator Biaggi was (pictured above).

When Senator Biaggi arrived she gave a quick review of what was done this year in the state legislature, introduced her staff and then asked residents for any problems. 

Problems raised by the tenants of Evergreen Gardens were that of the removal of a BX 5 bus stop, new housing in the area, lack of parking, security in the building floors and and stairwells, upkeep of the grounds. activity in the nearby area and park that needs police action, and getting repairs done since the management office was moved out of the complex to Melrose Avenue (but no specific items were mentioned).  

Senator Biaggi asked if any other elected official had visited the complex, and she was told her predecessor Senator Klein had installed new peep holes in their doors. She was also told that Assemblyman Crespo and Councilman Salamanca were aware of the problems. She also asked the two police officers (P.O Luna, and P.O. Torres) of the 43rd precinct about the deployment of the officers of the 43rd precinct, and P.O. Luna replied that they were not the area NCO officers, and the senator would have to speak to the commanding officer of the precinct.

When asked about an adult fitness program started under Senator Klein she said anything that was funded under Senator Klein will continue to be funded by her. The issue of Thanksgiving turkeys then came up, with Senator Biaggi said she gave out one-hundred turkeys last year in November 2018 before she was sworn in. her staff was very helpful in taking down notes and giving advice, but when leaving there were some tenants who were skeptical of getting any results.

Above - Senator Biaggi speaks to the people in the community room of Evergreen Gardens.

Below - Police officers Luna and Torres from the 43rd precinct were present to hear any problems that the precinct might have to handle. A loose ceiling tile can be seen behind the officers, along with what appears to be mold growing in the top corner. 

Above - On the right side of the room loose ceiling tiles can be seen, along with what appears to be mold.

Below - Another area of the community room has paint peeling from the area next to this pole.

It appeared that Senator Biaggi and her staff were missing the larger problems in Evergreen Gardens that should have been very obvious to them in the room they were in. That being loose or falling ceiling tiles, peeling paint, and probable mold growing around the room.