One of the most powerful financial jobs in America almost never draws a fight — until now. With New York’s Democratic primary just days away, State Comptroller Thomas DiNapoli, the sole trustee of the New York State Common Retirement Fund, faces his first contested primary in roughly two decades, as challengers Drew Warshaw and Raj Goyle argue that the nearly $300 billion fund has been mismanaged. The fund is the third-largest public pension in the United States, and it is controlled by one person.
That concentration of power is the heart of the story. As sole trustee, DiNapoli manages close to $300 billion in retirement savings for more than a million current and former government workers without a board or a cosigner. He has held the office since 2007, when he was installed through an Albany legislative deal rather than elected to it, and has run without a serious Democratic challenger ever since. A recent poll found that 65% of New York Democrats had never heard of him.
The two challengers are making overlapping cases. Warshaw, a former official in the governor’s office and the Port Authority with a background in renewable-energy business, and Goyle, a former state lawmaker, both argue the office has been “asleep at the switch,” pointing to investment fees, what they call fiduciary shortcomings, and a fund they say has been pointed in the wrong direction. Warshaw has pledged to refuse campaign donations from law firms that do business with the fund — a contrast to reporting showing that DiNapoli accepted donations from attorneys at firms his office later hired to litigate on behalf of the pension fund.
DiNapoli’s supporters point to his record. Over nearly two decades, his office has recovered hundreds of millions of dollars through securities litigation and shareholder actions, with money flowing back to retirees. He has also become a prominent voice on corporate governance, executive compensation and climate-related shareholder initiatives.
The stakes extend well beyond Albany. How a $300 billion pool of capital is invested influences returns for retired teachers, police officers and civil servants, affects fees paid to Wall Street asset managers, and gives its trustee substantial voting power in corporate boardrooms across the country. The fund’s performance also affects taxpayer-funded pension contributions by state and local governments.
The race is unusual because statewide financial offices rarely attract public attention. Both challengers are drawing support from voters who normally focus on higher-profile contests, creating one of the most closely watched comptroller primaries New York has seen in years. With the election approaching, voters face a rare decision over who should oversee one of the largest public pension funds in the world.
JBizNews Desk
© JBizNews.com All Rights Reserved. Reproduction or distribution without written permission is prohibited.
