By Olivia Raimonde | Updated on Jun 12, 2026 at 04:15 PM
New York City’s pension system said it’s seeking bids for roughly $92 billion of stock index-tracking funds now overseen by BlackRock Inc. and State Street Investment Management .
The existing contracts expire by the end of the year, and all interested firms, including BlackRock and State Street, will be eligible to submit proposals by July 15 to manage the portfolios, the office of City Comptroller Mark Levine said Friday. BlackRock oversees about $65 billion of passively run equity funds for the pension plans, while State Street manages more than $27 billion.
Delivering the strongest returns requires an “ongoing review of our contractual relationships with each of our asset managers,” according to Levine’s office. “We cannot keep these relationships on autopilot.”
The city’s five major pension plans have a total $127 billion in equity investments, most of it allocated to index funds. Levine, who took office in January, has been reviewing management of those assets after his predecessor, Brad Lander, recommended dropping BlackRock over the firm’s approach to climate change. Lander was more favorable toward State Street, saying the firm had a “more robust approach” to engaging with companies on the environment.
The decision to accept new proposals from asset managers is unrelated to Lander’s assessment, Levine’s office said, adding the move reflects “good governance,” given that the city last sought bids for the index-fund business in 2017. The contracts have been renewed twice since then without soliciting new bids.
A BlackRock spokesman said the city is “a long-standing client, and we look forward to continuing our work with them.” State Street declined to comment.
Equity index funds are low-cost investment vehicles, with big pension funds typically paying management fees of 1 to 5 basis points. Assuming an average fee of 1 basis point for the city’s $92 billion of funds, the firms would be competing for annual fees of roughly $9.2 million.
BlackRock and State Street, along with Vanguard Group Inc., are the world’s largest managers of index funds followed by firms including Fidelity Investments and Invesco Ltd.
New York City’s major public retirement systems are the New York City Employees’ Retirement System (NYCERS), the Teachers’ Retirement System (TRS), the Board of Education Retirement System (BERS), the Police Pension Fund and the Fire Pension Fund.
NYCERS, TRS and BERS have net-zero climate goals, meaning the funds’ environmental, social and governance policies will be among the factors considered when evaluating bids, Levine’s office said. In NYCERS’ 2025 climate report , published in April, Levine wrote that “BlackRock is still assessed as insufficiently aligned” with the pensions’ net-zero expectations.