BONUS: NY Comptroller Candidate Drew Warshaw on Changing the NY State Pension Funds | Masters in...
From Masters in Business
Drew Warshaw•Candidate for New York State Comptroller
Executive Summary
Drew Warshaw, a candidate for NYS Comptroller, argues the state's ~$300B pension fund has underperformed benchmarks by $39B over 18 years, costing taxpayers an additional $59.1B to cover shortfalls.
He criticizes the $11.3B in fees paid to 664 active investment managers and proposes a shift to a low-cost, passive index fund strategy focused on proper asset allocation.
Warshaw identifies housing affordability as a critical crisis, proposing a $10B fund, the largest in the U.S., to invest pension assets in creating 100,000 affordable homes in New York.
He also plans to increase government efficiency by reforming building codes to lower construction costs and by automatically returning the $20B in the state's Unclaimed Funds to New Yorkers.
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Concerns Raised
Chronic underperformance of the NYS Pension Fund compared to its own benchmarks.
Excessive fees ($11.3B) paid to hundreds of external investment managers.
The direct impact of pension shortfalls on New York taxpayers, who have paid an extra $59.1B.
The severity of the housing affordability crisis in New York and across the U.S.
Opportunities Identified
Shifting the pension fund to a low-cost, passive index strategy to improve net returns and reduce taxpayer burden.
Creating a $10 billion fund to invest in affordable housing, potentially building 100,000 homes.
Reforming state building codes to reduce construction costs by an estimated 10-15%.
Proactively returning $20 billion in the state's Unclaimed Fund to New Yorkers.