What's happening
The RIOT Act prohibits New York public pension funds from investing in firms that make certain political contributions and requires disclosure of executive donations.
Why it matters
Public pension funds would be required to avoid investing in firms that directly support certain political groups. specifically, those making corporate contributions to super PACs, 527 organizations, or 501(c)(4) social welfare nonprofits. This could change the investment landscape for pension funds, potentially excluding a number of large financial firms and corporations.
Senior executives at firms receiving pension fund investments would face new personal donation limits. , with a cap of $10,000 for contributions to the affected political entities. This aims to reduce the influence of top corporate leaders in high-dollar political spending, possibly impacting their personal political involvement.
Mandatory disclosure requirements for executive political contributions below the threshold. would increase transparency about the political activities of senior executives at companies tied to public retirement funds. This could expose political donation patterns and subject firms to greater public and regulatory scrutiny.
The law responds to concerns about reputational risk. following high-profile political events, suggesting that the social and political activities of investment targets could increasingly be considered a fiduciary concern for public pension managers. This may influence how public funds assess and manage non-financial risks in their portfolios.
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Who cares
Firms receiving pension fund investments
The bill would prohibit these firms from pledging direct corporate contributions to super PACs, section 527 political organizations and section 501(c)(4) organizations.
Senior executives at those firms
They would be barred from contributing more than $10,000 individually to the listed entities and would have to disclose contributions at or below that amount to the agency overseeing the fund.
State and New York City comptrollers and the Department of Audit and Control
They would receive executive contribution disclosures for funds they oversee.
Public employees with pension investments
The bill aims to address reputational risk in public pension investments through restrictions on political contributions by investment firms and their senior executives.
Headline styles
Limit Pension Political Donations
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 40
1 Co-sponsor
History
- Referred to governmental employees
- Referred to governmental employees
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
373
2025-2026 Regular Sessions
IN ASSEMBLY (Prefiled)
January 8, 2025
Introduced by M. of A. KIM, MAMDANI -- read once and referred to the Committee on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to establishing the reputational insight and oversight transparency act
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "reputational insight and oversight transparency act" or "RIOT act".
§ 2. Legislative findings. The legislature finds, (a) in the aftermath of the January 6th storming of the United States Capitol, that groups who had supported lawmakers in overturning the presidential election results had financial backing from private equity firms and big corporations, and (b) that public pension investments through the New York State Common Retirement Fund and analogous pension funds in New York state municipalities must account for reputational risk for the welfare of New York state public employees.
§ 3. The retirement and social security law is amended by adding a new section 177-f to read as follows:
§ 177-f. Restriction of certain investments in firms. 1. Firms in which the fund invests shall not pledge any direct corporate contributions to independent expenditure-only political action committees (super PACs), tax-exempt political organizations defined under section 527 of the Internal Revenue Code or tax-exempt organizations defined under § 501(c)(4) of the Internal Revenue Code.
2. Senior executives at such firms are prohibited from making individual contributions in excess of ten thousand dollars to the entities listed in subdivision one of this section.
3. Senior executives at such firms who make individual contributions to the entities listed in subdivision one of this section at or below ten thousand dollars shall disclose such contributions to either the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00188-01-5
department of audit and control, the office of the New York state comptroller or the office of the New York city comptroller, whichever department or office oversees the fund.
§ 4. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.