New York Gov. Andrew M. Cuomo directed the state Insurance Department to issue permanent regulations banning placement agents, lobbyists and elected officials from any business with the $140.6 billion New York State Common Retirement Fund, Albany.
The new rules will ban, for the first time, the involvement of elected officials in any pension fund business. The regulations would also end “revolving door” employment of former pension fund officials at firms that do business with the retirement plan, and would bar firms that directly or indirectly make campaign donations, charitable contributions or gifts to the comptroller, according to a news release from Mr. Cuomo's office.
Previously, the Insurance Department had issued temporary regulations banning pay-to-play at the state fund. Current state Comptroller Thomas DiNapoli, the sole trustee of the pension fund who originally banned placement agents in 2009, said in a statement that he welcomed the regulations.
Before being elected governor last year, Mr. Cuomo investigated corruption at the pension fund as state attorney general and vowed during his campaign to bolster New York's ethics rules.
The order follows the April 15 sentencing of former state Comptroller Alan Hevesi, who will spend up to four years in prison for giving preferential treatment to Markstone Capital Partners in exchange for almost $1 million in gifts.
