Bloomberg and Liu work with unions to overhaul pension system

Mayor Michael Bloomberg and City Comptroller John Liu joined forces Thursday to announce the creation of a chief investment officer who would oversee a revamped pension system totaling $120 billion in funds.

Currently, the pension system is made up of different boards each overseeing funds belonging to five city unions, including the police, firefighters and teachers. The proposal seeks to streamline them into a single pension investment board made up of union members as well as mayoral and comptroller appointees.

The chief investment officer would report to the board and not any one elected official, according to the proposal, which requires the state’s approval.

Union leaders praised the initiative as “smart,” and it even had Bloomberg and Liu — known for their strained relationship — to praise one another’s efforts.