Park Slope Food Coop Votes Down Pension Oversight Committee

PARK SLOPE, BROOKLYN — The membership of the Park Slope Food Coop voted down a proposal Tuesday to create a five member board to advise the Coop's pension trustees. The vote was 152 in favor and 472 against, according to a tally posted on the Coop's Twitter feed.

The 17,000-member Park Slope institution has had a pension fund since about 1993, according to Coop general coordinator Ann Herpel. Coop employees become eligible for the defined benefit plan after seven years of work, and approximately 90 are, Herpel said, though fewer than 10 are currently receiving benefits.

The pension fund is currently managed by two trustees, Herpel said. But as previously reported by the New York Times and the Wall Street Journal, membership jitters emerged after knowledge spread that nearly 40 percent of the fund was invested in potentially volatile biotech stocks. What's more, between the beginning of 2014 and the start of 2016, the fund's value dropped from $7.3 million to $4.8 million, according to Coop records. It has since recovered to more than $7.5 million.

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The proposal before the Coop's membership (below) would have created a committee tasked with "monitoring the overall performance of the fund," as well as "maintaining regular communication with and offering advice to" trustees, and educating the membership about the plan's performance. The committee was to consist of five elected members who had been Coop members for at least two years, while at least two needed at least three years of relevant experience in finance.

But a majority of the Coop's 72 employees opposed the plan, Herpel said — not because they oppose greater pension fund oversight, but because of the proposed committee's structure. A handout distributed at Tuesday's vote (below) spelled out what the staffers wanted to change: among them, that all advisory committee member should have at least three years of financial experience, that Coop staff members should be part of the committee, "as it will oversee our largest benefit," and that those tasked with selecting the slate of committee candidates should not be allowed to nominate themselves for committee positions.

The handout also emphasized that the Coop has taken steps to increase pension fund transparency and reduce the volatility of its investments. An investment manager, Vanguard investor Dan Wiener, is now advising the trustees, according to the packet, while more information on the pension fund will be provided at the Coop's yearly meeting.

More broadly, the fund is in the process of shifting its investment strategy. It's selling off its stocks, and by April will be split between equities (about 65 percent) and fixed income securities (about 35 percent), investments considered to be more stable.

Herpel said it's still possible the staff will agree to support an oversight board in the future, but "one everyone can agree on."

Pictured at top: the Park Slope Food Coop. Image via Google Maps.