New York, NY (June 10, 2026)

A new analysis is raising concerns that Israel-related divestment policies could create major financial exposure for New York City’s public pension systems and, ultimately, city taxpayers.

The report, released Wednesday by the Anti-Defamation League and its affiliate JLens, examined the potential long-term effect of investment restrictions tied to the Boycott, Divestment, and Sanctions movement. The analysis focused on what could happen if city pension funds excluded dozens of major American companies targeted by BDS activists because of their business ties to Israel.

Researchers compared two hypothetical large-cap U.S. equity portfolios over a 10-year historical period. One portfolio remained broadly diversified, while the other removed 47 major publicly traded companies, including some of the country’s largest technology, retail, financial, and industrial firms. The analysis found that the restricted portfolio trailed the broader portfolio by roughly two percentage points on an annualized basis.

When applied to estimated large-cap U.S. equity holdings across New York City’s pension systems over a future decade, the report projected approximately $37.55 billion in forgone value from 2025 through 2035.

The largest projected impact was tied to the Teachers’ Retirement System, with an estimated $15.09 billion in potential lost value. The New York City Employees’ Retirement System was projected at $10.91 billion, followed by the Police Pension Fund at $7.13 billion, the Fire Pension Fund at $3.02 billion, and the Board of Education Retirement System at $1.41 billion.

Excluding large, high-performing companies could weaken returns, increase pension obligations, and shift costs onto taxpayers.

For New York City employees, retirees, and beneficiaries, the issue centers on whether pension investment decisions should prioritize maximum long-term financial stability or incorporate broader activist demands. The report argues that BDS-aligned restrictions could carry significant financial consequences for the city’s retirement systems.