The city director, alongside Zoran Mamdani and Krony Brad Lander, has backed the movement to boycott Israel by pulling the Union Pension Fund from bonds associated with the nation.
In a letter dated July 10, Deputy Mayor Randy Mastro expressed the Adams administration’s request for a review regarding the process that led to New York City’s pension funds divesting from Israeli bond investments. The letter, which was seen by the Post, pointed out that this action coincides with a broader global boycott, divestment, and sanctions (BDS) campaign against Israel, suggesting the city is quite involved in this initiative, potentially at a cost to pension fund holders.
Mastro emphasized that the public characterization of this “no-reinvestment decision” wouldn’t escape scrutiny.
New York City first invested $30 million in Israeli bonds back in 1974, initiated by former City Secretary Harrison Goldin, through an educator’s pension fund. Over the decades, several city secretaries, including Elizabeth Holtzman and Scott Stringer, have rolled over these bonds as they matured.
Currently, however, the only city pension fund still holding Israeli bonds is that of the police, which has roughly $1 million in such investments.
In contrast, the New York state pension system, managed by state secretary Tom Dinapoli, has invested upwards of $360 million in Israel.
Mastro highlighted in his letter that the rationale behind this withdrawal appears incomplete. He noted that the city’s pension plan had maintained significant investments in Israeli bonds for many years, yielding strong returns without substantial risk.
Under the current administration, these holdings have dwindled from tens of millions of dollars across various pension funds to about $1.2 million, held exclusively by police pension funds. Mastro suggested this shift results from a deliberate choice not to reinvest in Israeli bonds as they matured, which has adversely impacted the performance of the pension fund’s bond portfolio.
Israeli bonds are generally seen as stable investments, often generating an average annual return of around 5%.
It remains uncertain how much the workers’ pension funds have suffered due to this policy change.
During the city’s Democratic primary in June, Lander and Mamdani, both vocal critics of Israel, crossed paths. Their campaigns have garnered attention for attracting both left and right votes within the party.
Mastro pointed out that Lander has publicly framed his decision as based on limits regarding foreign sovereign debt, rather than a specific targeting of Israeli bonds. However, this stance seems inconsistent, as Israeli bonds are the only sovereign debts in question.
There’s a fiduciary responsibility to the pensioners that Mastro believes is now under scrutiny because of Lander’s actions.
The Secretary’s office oversees five pension plans which include systems for teachers, employees, police, fire personnel, and education board members. The mayor also has representatives on the pension committees along with union officials.
Mastro has requested Lander’s office to provide any documents and communications related to divesting from Israeli bonds after the existing ones mature. This includes discussions with external parties and he asked for a response by July 17.
Democrat Adams is running for re-election as an independent, looking for backing from Jewish voters. He will compete against Democratic candidate Zoran Mamdani, Republican Curtis Sliwa, and former Governor Andrew Cuomo, as well as lawyer Jim Walden, who are also running on independent lines.
Mamdani is a noted supporter of the BDS movement against Israel.
While Lander’s office has not commented on the matter, it has become a point of discussion following setbacks in a significant Democratic campaign.
He has expressed opposition to the BDS movement. A spokesperson stated in March, “Lander has never sold,” emphasizing a policy against investing in foreign sovereign debt, though acknowledging over $400 million in investments in Israeli companies.
