The following is a copy of a letter I wrote to the City Comptroller: The letter remains unanswered.
Comptroller of the City of New York
1 Centre Street
New York, NY 10007
Dear Mr. Lander:
I have been following the intricacies of the TRS’ TDA Plan ever since it started on February 1, 1970. I don’t know of any other Defined Contribution savings plan where the employer borrows the employees’ retirement savings; do you?
Mr. Lander, as you know, the four public trustees on the Teachers’ Retirement Board legally represent the taxpayers of the City of New York and not the participants of the TDA Plan. The payment of 7% or 8.25% interest, however, lends credence to my assertion that the four of you do, in fact, represent the participants of the TDA Plan and not the taxpayers of the City of New York. Do the four of you know the City can satisfy all of its borrowing needs at the Municipal Bond Window at 2-3% interest?
The four of you must lobby Albany to repeal the investment option of having the City of New York borrow TDA retirement savings. The continuation of paying such guaranteed rates is bound to place in peril the System’s legal obligation to pay pensions.
I await your learned reply.
Joel L. Frank
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