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Q&A

CM Morano questions Comptroller on pension re-amortization vs reserve building

New York City Council · Jun 9, 2026 · starts 5:18:27 · 1 min 56 sec

Morano asks what OMB is getting wrong on pension re-amortization and what Levine would have done instead. Levine acknowledges the accounting justification for smoothing but would have preferred using the windfall to build reserves rather than plug the gap, noting the decision rests with pension trustees where labor unions have dominant votes.

Frank Morano

Thank you, Chair.

Frank Morano

Sir, for the record, comptroller or controller?

Unidentified speaker

Mark is just fine, Councilmember.

Frank Morano

But in general, if you're setting the tone for the city.

Unidentified speaker

I don't want to be put on the record on this because I don't want to upset one of the constituencies.

Frank Morano

Fair enough.

Frank Morano

All right.

Unidentified speaker

Ask me when I'm not under oath.

Frank Morano

OMB testified.

Frank Morano

morning that the pension re-amortization is a responsible way to smooth payments over time and improve predictability.

Frank Morano

Your testimony characterizes that same action as one of the major reasons where, as you said, kicking a very big can into next year.

Frank Morano

What specifically do you believe OMB is getting wrong?

Frank Morano

If this pension restructuring is such a concern, what would you have done instead?

Unidentified speaker

I really appreciate the question.

Unidentified speaker

And this is a once in a lifetime opportunity here.

Unidentified speaker

I think there is an argument to smooth out the payment schedule from an accounting perspective.

Unidentified speaker

I would prefer that given this is a once in a lifetime windfall that we use it to build up reserves.

Unidentified speaker

Not to simply plug this year's gap.

Unidentified speaker

And that's an opinion I've expressed repeatedly.

Unidentified speaker

This is ultimately a decision of the trustees, where the labor unions themselves have the dominant vote.

Unidentified speaker

And those votes are now rolling out.

Unidentified speaker

The first very small pension fund, Board of Education and Retirement Services, did vote to approve last week, but this is probably only about

Unidentified speaker

3% of our total assets.

Unidentified speaker

The big funds are still scheduled for the weeks ahead.

Unidentified speaker

So stay tuned for that.

Unidentified speaker

But again, my feeling is there is a justification for smoothing this from an accounting perspective.

Unidentified speaker

But I just want to make sure that we are also using this very unique opportunity.

Unidentified speaker

to build our resilience for the long term.