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Trustees press for clarity on Port Authority public-private partnership and GERS membership
Summary
A trustee asked whether employees affected by a proposed Port Authority public-private partnership would remain in the retirement system; GERS staff said legal authority and jurisdiction limit what GERS can answer, and there was no update available at the meeting.
During the Jan. 23 meeting, Trustee Dorsey asked whether employees who move to a public-private partnership at the Port Authority would remain members of the Government Employees Retirement System (GERS). "I just wanted to know for the record if the employees, with this public private partnership at the Port Authority are gonna be part still of the GRS system," Dorsey said.
Administrator Dawson and board counsel told trustees that the question raised legal and jurisdictional issues outside GERS' direct control. Dawson said the issue "is not a GRS issue" in the sense that GERS cannot determine the legality of a private entity taking over safety or security functions at an airport and thereby changing employment status.
Trustee Smith—who serves as a trustee and is also a port board member, Dawson said—was asked by Dorsey to provide an update. Dawson reported, "there is no update." Trustees pressed for assurance that employees would not be forced out of the system; Dorsey said he had previously told employees publicly GERS members would not be involuntarily removed from coverage unless those employees chose to retire or otherwise leave.
Why it matters: A change in employer status can affect whether workers remain in a public retirement system; trustees sought clarity because potential transfers could affect membership counts and long-term liabilities.
No formal action or vote was taken on the item. Dawson and trustees agreed the topic would remain under observation and that staff would report any developments to the board when new information becomes available.
