Wednesday, March 23, 2011

Golden Retirement Plan

On Wednesday, the Senate Civil Service and Pensions Committee will consider a bill (SB 3402) from Sen. Marty Golden, R-NYC, increase the percentage of assets that may be invested by public employee retirement systems in real estate from five percent to ten percent.
The bill's memo argues that over the years that with aging baby boomers, the public employee retirement systems are experiencing an influx of retirees and a growth in the retirement payroll that must be funded. This need has created a demand for new investments in the types of capital assets that can provide steady income, which is where real estate investments come in.
Real estate is attractive in this area because a considerable portion of the investment return can be realized from rent.
Current law, though ,limits investments in real estate to 5 percent of a system's assets. At the behest of the Retirement Board, Golden's memo supports raising that cap to 10 percent.
This bill previously passed the Senate when it was introduced by Indy Dem Diane Savino, but has never gone anywhere in the Assembly.

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