New York pension system is in trouble because of Russian stocks

New York State pension systems want to sell nearly $300 million worth of securities invested in the Moscow stock market, but can't because Russia has banned foreigners from selling shares, reports New York Post.

Since Russia began its invasion of Ukraine, the trustees of all five New York City pension schemes have voted to remove $185,9 million in city pension money from Russian companies and securities. On March 25, New York State Comptroller Thomas DiNapoli issued an order for the withdrawal of about $110,8 million invested in Russian securities by the state. Thus, in total, the City and State of New York hold $296,7 million in Russia.

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Of the city's money blocked in Russian companies, the largest amount - $90 million - is in pension fund teachers. It is followed by the Police Pension Fund ($42,2 million); NYCERS, which includes corrections officers, clerical workers, and sanitation workers ($31,1 million); New York City Fire Department Pension Fund ($19,5 million); further - the Pension Education Management System ($3,1 million).

But Russia has stymied the New York pension system and others around the country who want to get rid of Russian stocks and assets. Moscow closed its stock market to foreigners on February 25, a harsh move seen as retaliation for freezing Russian central bank assets in the US and Europe.

Pension systems will continue to hold Russian investments pending the lifting of restrictions by Moscow.