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S T A T E O F N E W Y O R K
________________________________________________________________________
11078
I N A S S E M B L Y
April 24, 2026
___________
Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit-
tee on Governmental Employees
AN ACT to amend the education law, in relation to prohibiting fund
managers in certain retirement systems
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Subdivision 18 of section 508 of the education law, as
2 added by chapter 779 of the laws of 1982, is amended to read as follows:
3 18. [Notwithstanding any other provision of this section, the] (A)
4 BEGINNING ON THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOU-
5 SAND TWENTY-SIX WHICH AMENDED THIS SUBDIVISION, THE retirement board
6 shall [have the power to delegate to one or more] BE PROHIBITED FROM
7 ENTERING INTO ANY CONTRACT TO ENGAGE, HIRE, INVEST WITH OR COMMIT TO AN
8 investment [managers its authority] MANAGER to invest moneys belonging
9 to the retirement system, OTHER THAN REAL PROPERTY, BY THE FUND. [The
10 term "investment managers" as used in this subdivision shall include but
11 not be limited to independent contractors selected by the retirement
12 board.]
13 (B) BEGINNING ON THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO
14 THOUSAND TWENTY-SIX WHICH AMENDED THIS SUBDIVISION, THE FUND SHALL NOT
15 RENEW ANY EXISTING CONTRACTS TO ENGAGE, HIRE, INVEST WITH OR COMMIT TO
16 AN INVESTMENT MANAGER TO ASSIST IN OBTAINING INVESTMENTS BY THE FUND.
17 (C) FOR THE PURPOSES OF THIS SUBDIVISION:
18 (I) "INVESTMENT MANAGER" SHALL MEAN ANY PERSON, OTHER THAN AN EMPLOYEE
19 OF THE COMPTROLLER, OR ENTITY ENGAGED BY THE COMMON RETIREMENT FUND TO
20 MANAGE A PART OR ALL OF AN INVESTMENT PORTFOLIO OF THE FUND, OTHER THAN
21 REAL PROPERTY OWNED BY THE FUND.
22 (II) "MANAGE" SHALL INCLUDE, BUT IS NOT LIMITED TO, THE ANALYSIS OF
23 PORTFOLIO HOLDINGS, AND THE PURCHASE, SALE, AND LENDING THEREOF.
24 § 2. This act shall take effect on the first of January next succeed-
25 ing the date on which it shall have become a law.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15446-01-6