Wong v. New York City Employees’ Retirement System

The New York Appellate Division affirmed the dismissal of a lawsuit alleging that three New York City public employee retirement systems breached fiduciary duties by divesting from companies involved in fossil fuel extraction. The appellate court found that the plaintiffs, who were recipients of a defined benefit retirement plan, failed to establish standing because they did not demonstrate an injury in fact since their benefits “are fixed and will not change, regardless of how well or poorly the plan is managed.” The court also said the legislature and courts could not encroach on the discretion vested in the “politically accountable trustees,” and characterized the plaintiffs’ arguments as speculative, “particularly based on the documentary evidence and the absence of any support for the allegation that the plans might be unable to cover their obligations to retirees.”