Gov Cuomo’s Move To Sell Off Oil Assets Could Cost NY Retirees Their Savings

Democratic New York Gov. Andrew Cuomo’s pledge to rid the state pension fund of fossil fuel-related assets could cost New York City’s retirement funds more than $1 trillion over the course of 50 years.

Cuomo is creating a plan to divest the New York State Common Retirement Fund from oil and coal investments as part of his 2018 agenda. The plan will be more fully fleshed out during the governor’s Jan. 3 State of the State speech — the scheme could hit citizens right in the wallet.

The state pension fund, which represents roughly 1 million retired public employees, is the third largest in the nation, with a value of about $200 billion. Most estimates show that $3.68 billion of the pension is invested in the top 200 fossil-fuel companies in the world.

Recent reports show a wholesale selloff could end up costing New York City’s top five pension funds nearly $1.5 trillion over a 50-year time span. The New York City Employee’s Retirement System (NYCERS) would bleed more than $600 billion during that period, according to a report earlier this year from the University of Chicago Law School.

The same report, which is financed in part by Independent Petroleum Association of America, found that the nation’s largest pension fund, California Public Employees’ Retirement System (CalPERS), would also take a huge hit. CalPERS would lose approximately $3 trillion if California enacted a similar divestment plan in that state.

Cuomo’s gamble is getting a frosty treatment from the official responsible for governing the pension.

“We’ve shown that shareholders have the power to compel major corporations, like Exxon Mobil, to address climate change,” State Comptroller Thomas DiNapoli said in his response to the governor’s announcement. DiNapoli, who has committed $5 billion of the fund’s money to green investments, worries that leaving oil assets on the table could hurt Cuomo’s anti-oil plan.

Manufacturers in the state agree. The 10,000-member Suffolk County Association of Municipal Employees, for instance, noted that staying wed to investments in Exxon would give pensioners a seat at the table to force change with the company.

“It’s not an argument on our part that there isn’t a need to address fossil fuels,” union President Daniel Levler told reporters Thursday. “We’re wondering if it isn’t more sound to have a seat at the table to prevent the worst of what this industry might do.”

Oil producers will find other investors who might not be committed to holding them accountable for whatever damage Cuomo thinks they are causing. “If we pull out, someone else is going to jump in … Will that person be guided solely by profits?” Levler added.

Read more at Daily Caller

Trackback from your site.

Comments (8)

  • Avatar

    Spurwing Plover

    |

    Like any typical demac-RAT Cuomo dont give a darn for the citizens all he want to do is reduce his subjects to poverty and ruin to appease the Useless Nations and the radical enviromentalists maybe in their next election they should make him Go

    Reply

  • Avatar

    Al Shelton

    |

    What a complete ignorant fool he is…………….
    Maybe the voters will kick him out.

    Reply

  • Avatar

    JayPee

    |

    In RE : Headline :

    NO IT CAN’T

    Because greaseball Andie

    CANNOT

    Touch the retirement fund because of the restrictions of the NYS Constitution who they have failed to able to trash.

    The NYS Comptroller is under severe restrictions as well
    like at the fiduciary level
    where screwing around with other peoples money
    can land you in jail.

    This is one of the few good things that can be said about NYS.

    KOO – AHH – MOE

    You are not going to be allowed to buy the presidency

    with pensioners money .

    Reply

  • Avatar

    Amber

    |

    Dumb & Dumber photo -op .
    How exactly is Exxon “addressing ” climate change ? Translated Exxon has been bullied to play ball by making BS statements
    or obvious truths like climate changes . Who knew ?
    Some how Exxon wasn’t so cowed with the global cooling scare but hey …. what ever sells ? Drill baby drill .
    Shouldn’t every politician be charged for allowing the sale of fossil fuels if they believe the PR about oh so scary global warming ?
    If anyone ever wonders how the Nazi’s took power look no further than the over hyped global warming fraud .
    Over 300,000 Germans cut off the electric grid due to obscenely high electric prices . How many preventable fuel poverty deaths
    were caused by fraudulent science , climate con -men , and politicians looking for new taxes ?
    There is a revolution coming from the serfs who have had enough .

    Reply

    • Avatar

      David Lewis

      |

      Amber, you have a good point in asking how was Exxon forced to address climate change. Yes, they made a BS statement, but the only real thing they could do that would make the radicals happy would be to go out of business. Just how would that be good for their investors?

      I keep saying that if something of value is sold, someone else will buy it. The only thing divesting from fossil fuel investments does is make those doing it feel good.

      Reply

  • Avatar

    Sonnyhill

    |

    Business will follow the big red carpet to welcoming arms. Business will move to America from hostile environs like Australia, Germany and Canada. Business will move from NY and Cali to Texas . Competitive energy prices and tax policy will seduce businesses that have paid lip service to climate change and socialist policy. Enjoy the spin from all parties.

    Reply

  • Avatar

    Spurwing Plover

    |

    A perfect new years resolution for the global warming crowd would be to quit dictating to us skeptics and kept their Hot Air and Hypocricy to themselves

    Reply

  • Avatar

    Spurwing Plover

    |

    TWEEDLEE DUMB AND TWEEDLEE DEE,SAILED OUT ON THE DEEP BLUE SEA,THE JUB JUB BIRD HE CAME ALONG,AND HE SANG A MOCKING SONG,TO TEEDLEE DUMB AND TWEEDLEE DEE,YOUR STILL LOST ON A CHOPPY SEA,SO USE USED TO TASTE THE RICE,WHILE TRAPPED IN THE ICE

    Reply

Leave a comment