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UFT President Michael Mulgrew joined Mayor Bloomberg and other union leaders to announce new pension reforms

Management of the teachers’ retirement fund is being merged with other public pensions systems under a proposal unveiled today by city officials and union leaders.

In an effort to chip away at the rising costs of the city’s $120 billion pension fund, Mayor Bloomberg and Comptroller John Liu announced a proposal to overhaul city unions’ scattered pension systems. Until now, each of the five different funds – for teachers, police, fire, school employees and other public sector — had been managed by a handful of trustees under the comptroller’s office.

Under the proposal, the pools of money from each union will be kept separate but the same professional investors will manage all of the funds. Those investors will not be part of the comptroller’s office and will not change when a new comptroller is elected, as they have in the past.

Bloomberg, Liu, and union leaders said today that the fund’s underperformance had resulted in part from its management structure.

But the proposal does not address other issues underlying the city’s growing pension costs, which have soared in the last 10 years. (more…)

Mayor Bloomberg and UFT President Randi Weingarten announced a tentative contract deal last night, just in time for Weingarten’s announcement Wednesday. The agreement would roll back pension benefits for newly hired employees, but preserve benefits for current teachers. It would also scrap the two work days before Labor Day that were added to the work year in the last contract negotiation.

Not mentioned in either Bloomberg’s press release or Weingarten’s e-mail to teachers (sent late last night and obtained thanks to a helpful reader): the small matter of the $81 million-a-year Absent Teacher Reserve. That’s the pool of teachers who are the losers in the system’s new hiring market — but haven’t been able to find positions at schools.

The union and the city struck a deal to try to drain the pool in November, but the number of reserve teachers stayed basically the same.

This appears to be Weingarten’s penultimate loose end before she leaves the city to work at the national teachers union full-time. The final deal she must announce: A contract agreement with the union-represented Green Dot charter school in the Bronx, which officials are unveiling this afternoon.

Here’s how Weingarten described the new citywide labor agreement in an e-mail to teachers, followed by Bloomberg’s press release: (more…)