With the quote below from the FY-2025 financial report, you can see that NYCERS is struggling with a major crisis in its massive $84 million IT upgrade project. Since 2021 the project has also incurred secondary costs of about $43 million.
Up until February 2026 the executive director was reporting at the monthly board meeting to the trustees about the status of the LRP project.
Then in March 2026 the problem was dropped from the board meeting agenda with no mention of it at the March meeting. In April 2026 it was again missing from the agenda with no comments at the board meeting.
April is particularly significant since April was the target date for reporting to the trustees "on a comprehensive re-baseline plan to complete the project , with an updated schedule and project details"
The trustees have made no comment on the new omissions. I can only assume that the trustees are covering up this disaster.
You can just imagine how the trustee budget committee handled the LRP project at the March 26, 2025 budget meeting. The Chairperson has such great trust in the executive director as he clearly stated at the March board meeting.
Extract from NYCERS FYY-2025 Financial Report - Page 14
The Legacy Replacement Project (LRP) is NYCERS' multi-year transformation initiative to modernize NYCERS’ core business processes and replace NYCERS' existing legacy pension administration system with a secure, adaptable, and future ready technology platform. This modernization will significantly enhance how NYCERS conducts business and delivers services to members, retirees, employers, and partner City agencies. Initiated in June 2021 as a five-phase program targeted for completion in September 2026, the project continues to advance.
Phase 1 successfully was launched in January 2023, establishing critical foundational capabilities for future phases.
During Phase 2 development, legacy system dependencies were identified that required timeline adjustments.
In response, the systems integrator and NYCERS delivered a subset of functionality referred to as Phase 2.0 in January 2025, allowing progress to continue, while collaborating on a schedule for the remaining functionality continued.
NYCERS and the systems integrator are actively collaborating on a comprehensive re-baseline plan to complete the project , with an updated schedule and project details to be presented to the NYCERS Board of Trustees by April 2026.
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