THOMPSON, SCHUMER & WEINER TALK ABOUT PENSIONS

UPDATED: 5PM

NYC PENSION FUNDS DIVEST ASSETS IN TWO COMPANIES DOING BUSINESS WITH IRAN

-Comptroller Thompson, Senator Charles Schumer, and Congressman Anthony Weiner urge Pension Funds to liquidate assets in eight more companies with ties to country -

New York City Comptroller William C. Thompson, Jr., joined by U.S. Senator Charles Schumer and Congressman Anthony Weiner at a midtown news conference today, announced that the New York City Pension Funds are selling holdings of approximately $10.8 million in two companies with business ties to Iran.

The Comptroller is further asking Trustees of the five Pension Funds to promptly adopt resolutions for the phased divestment of holdings in eight more companies with substantial ties to Iran.

The market value of the eight companies is valued at more than $141 million.

"Our responsibility to protect retiree assets requires our constant pursuit of the highest standards of corporate responsibility at companies in which we invest," Thompson said.  "The decision to divest holdings in the two companies and my recommendation to divest in an additional eight companies were made after careful consideration of numerous events and factors, including the Iranian government's recent efforts to strengthen its nuclear weapons program and steal its presidential election."

Senator Charles Schumer said, "The recent protests in Iran over the presidential election have demonstrated to the American people what has been true for years. The Iranian government is a dangerous regime that will use violence, election fraud, and the suspension of fundamental civil and human rights to further the political interests of its leaders. I commend Comptroller Thompson for taking steps to end our commercial relationships with foreign companies that do business with Iran."

Congressman Anthony Weiner said, "Investing in Iran is dangerous business and it is immoral. It can only be interpreted as using the retiree savings of New Yorkers to make the world of the next generation less safe. I applaud City Comptroller Bill Thompson for taking action to stop the funding of this terrorist state."

In accordance with resolutions passed by the Pension Funds, Thompson recently notified the Funds of the impending sale of shares in Oil and Natural Gas Limited and PetroChina Company. Thompson's staff has directed investment managers to sell off the combined holdings of the Funds in these two companies, valued at approximately $10.8 million, resulting in an overall profit for the Funds.

In addition, Thompson has recommended that the Boards promptly adopt resolutions authorizing the phased liquidation of investments in the following additional companies: Petrol Brasileiro, Samsung Engineering, Inpex, OMV, Sinopec, China National Offshore Oil Corporation, Wartsila, and Repsol SA, all of which have significant ties to Iran.

Thompson applauded Congressman Weiner for his work in this area. Weiner highlighted three of these companies - Petrol Brasileiro, Samsung Engineering and China National Offshore Oil Corporation - and their substantial business operations in Iran.

The eight companies were recommended for divestment because each has significant involvement in business operations in Iran. Their selection also is consistent with the New York State Common Retirement Funds' recent decision to divest in nine companies, five of which are included in the above list, and the actions taken by numerous other public pension systems.

In addition, Congressman Weiner voiced his concerns regarding additional companies with ties to Iran such as Sasol Ltd., Royal Dutch Shell PLC, Lukoil, ENI, Total SA, and Gazprom.

Congressman Weiner has urged City pension funds to follow the lead of New York State and 15 states that have divested from investments in companies doing business with Iran's energy sector.

"Iran funds terrorism. They send weapons and resources to attack Israel. If these businesses do not stop supporting countries blocking peace in the Middle East and advocating the annihilation of Jews on their own, then we're going to crack down on them," Congressman Weiner said.

Thompson thanked the Congressman for his concerns and said that he and the Trustees of the Funds will conduct appropriate due diligence with regards to possible future divestment in these companies.

"I look forward to working closely with Senator Schumer, Congressman Weiner, and the Trustees to ensure that the topic of divestment is continually addressed with regards to these companies," Thompson said. 

Recently, Thompson urged U.S. Congressman Barney Frank, Chair of the Financial Services Committee, to include in his "Iran Sanctions Enabling Act" provisions that would offer additional protections, including indemnification, for large investors such as the City's Pension Funds that choose to sell holdings of companies doing business with Iran.

"I am confident that by working with our allies in government we can watch this bill become law," Thompson said.

These actions build upon strong pressure by the Comptroller's Office and the Pension Funds - on dozens of companies across the globe - to address their operations and actions in Iran.

"My office has been an outspoken opponent of companies seeking to do business with countries such as Iran.  While we have secured victories in pressuring companies to cease business in this conflicted country, a number of companies where the Funds are invested have dismissed our concerns," Thompson said. 

Since November 2002, the Comptroller's Office and Pension Funds have urged some of America's largest companies to sever their ties with nations that conduct business with Iran, a country identified by the U.S. State Department as a sponsor of terrorism. Since that time, six U.S. companies have agreed with the Pension Funds' request to sever such ties with rogue nations: ConocoPhillips, Halliburton, Cooper Cameron, Aon, Foster Wheeler, and General Electric.

Starting in 2005, the Comptroller's Office broadened its efforts and urged a number of companies to describe their policies and safeguards to mitigate the risks to their stock prices and reputations posed by their business ties to Iran.

The majority of companies responded to the Comptroller's Office. However, some companies repeatedly ignored efforts by the Comptroller's Office to obtain any information and have failed to respond to the City's inquiries.

"The unresponsiveness and lack of accountability of such companies creates an unacceptable barrier to the ability of the Pension Funds' trustees to protect shareholder value by engaging the companies' boards and managements on important matters of corporate governance and corporate social responsibility," Thompson said.

The Comptroller is investment advisor to and custodian for the five New York City Pension Funds: the New York City Employees' Retirement System (NYCERS), the Teachers' Retirement System for the City of New York (TRS), the New York City Police Pension Fund, the New York City Fire Department Fund and the New York City Board of Education Retirement System (BERS).

The Trustees (chairs in bold) of the New York City Pension Funds are as follows:

New York City Employees' Retirement System: Bud Larson, Mayor's Representative (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents Scott Stringer (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), James Molinaro (Staten Island), and Ruben Diaz, Jr. (Bronx); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers' Retirement System: Bud Larson, Mayor's Representative; Deputy Chancellor Kathleen Grimm, New York City Department of Education; mayoral appointee Tino Hernandez; and, Sandra March, Melvyn Aaronson (Chair) and Mona Romain, all of the United Federation of Teachers.

New York City Police Pension Fund: Mayor Michael Bloomberg; New York City Acting Finance Commissioner Michael Hyman; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen's Benevolent Association; Michael Palladino, Detectives Endowment Association; Edward D. Mullins, Sergeants Benevolent Association; Thomas Sullivan, Lieutenants Benevolent Association; and, Roy T. Richter, Captains Endowment Association.

New York City Fire Department Pension Fund: Mayor Michael Bloomberg; New York City Fire Commissioner Nicholas Scoppetta (Chair); New York City Acting Finance Commissioner Michael Hyman; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; John Dunne, Captains' Rep.; John J. McDonnell , Chiefs' Rep., and James J. McGowan, Lieutenants' Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.