Mayor Bloomberg and Comptroller Liu, working together? Nope, hell hasn't frozen over—the mortal enemies have teamed up to blow up the city's pension plans so that they can be reborn, phoenix-like, as one giant $120 billion dollar pension fund. Both pols are bullish on the idea, which has union backing, and are hoping Albany will approve it. Basically the idea is by putting the city's funds together with more streamlined management it will be easier for the funds to make money. And, as Bloomberg put it yesterday, "the more investment returns you have, the less that taxpayers have to put in.” more ›

We've all been there: you get a nasty shoulder injury and retire on disability. But it heals, so you start moonlighting as a construction worker for some extra cash in addition to your disability pay. But then you have to start ripping lines to stay awake for the construction gig. C'est la vie! Such is the amazing odyssey of former NYPD officer James Seiferheld, who will collect annual $52,365 disability pension despite being deemed healthy enough to work. After authorities found Seiferheld on a construction site a month after retiring under disability in 2003, they ordered him back to the work. A positive cocaine test prevented him from re-joining the force, but the Police Pension Fund must pay him his pension per court order. The system works! more ›

After getting sued for "alleged misstatements and omissions about its lending policies and procedures," Countrywide Financial and its auditor have agreed to settle the class-action lawsuit. The lead plaintiffs were the NY State Common Retirement Fund and five NYC pensions; NY State lost over $10 million and the city funds lost about $5 million. The Daily News reports that the state and city won't get all of it back, but City Comptroller John Liu Liu said, "Right now, without the settlement, we get nothing. So even if we get a couple of million dollars back, we're ahead." Countrywide said it "denies all allegations of wrongdoing and any liability under the federal securities laws. Countrywide agreed to this settlement to avoid the additional expense and uncertainty associated with continued litigation of plaintiffs' claims and Countrywide's defenses." more ›

The trouble is just starting for private equity firm Quadrangle. Last week, it was revealed the firm's founder—and current White House auto bailout chief—Steve Rattner allegedly paid $1 million to a middleman to be included in the state's pension fund. Now it appears the investigation is heating out up over his attempts to have Quadrangle included in other pension funds—like those of New Mexico, LA and NYC. Apparently Quadrangle paid middleman/placement agent fees to the firm of Hank Morris, already indicted in state pension fund scandal, to drum up business—the NY Times reports that after a meeting with the NYC Comptroller's office, "Mr. Rattner left the meeting irritated that his own considerable connections did not seem to be enough. He soon hired Mr. Morris." City Comptroller Thompson's office is now investigating over whether Quadrangle lied about not naming Morris as a placement agent. (Also, Morris was also former State Comptroller Alan Hevesi's political consultant/top fundraiser!) To that end, the State Comptroller Thomas DiNapoli has banned placement agents from the pension fund, but a NY Times editorial suggests that the Legislature needs to create an independent body that watches the investments the State Comptroller makes. more ›

Despite a forecast earlier this year that City pension funds would break even this year, it now appears that the funds will post large losses for the year. Three quarters of the way through the current fiscal year, city funds have lost almost $5 billion. Taxpayers are the ones who likely be called upon to make the funds whole and meet worker benefit commitments. Of the billions that will have to be repaid, the first installment will be $190 million in 2010. more ›