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New York City Comptroller William C. Thompson, Jr., on behalf of the New York City Pension Funds, announced that he has submitted a new shareholder proposal to two of the nation’s largest pharmacy chains, CVS Caremark Corporation and Rite Aid Corporation; and to SUPERVALU Inc., a leading combined food and drug store, calling on the companies to prepare, and make available to their shareholders, reports on how they are responding to increasing regulatory, competitive and public pressures to stop the sale of tobacco products.

The New York City Pension Funds are the: New York City Employees’ Retirement System, Teachers’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund, and Board of Education Retirement System.

The resolution can be viewed at www.comptroller.nyc.gov.

“Cigarette smoking continues to be a leading cause of illness and premature death in the United States,” Thompson said. “As such, there has been increased pressure to have pharmacies stop selling tobacco products. Pharmacy chains like CVS and Rite Aid, and combined food and drug stores like SUPERVALU Inc., have a responsibility to assess this deepening public concern and to disclose to their shareholders how they are responding, or intend to respond, to these mounting pressures.”

Public Advocate Betsy Gotbaum, who serves on the NYCERS Board, said, “By pushing these companies to disclose their actions regarding the public pressures to stop the sale of tobacco products, NYCERS is contributing to a healthier world and New York City. It is also working to ensure that shareholders get the best possible return on their money. Companies that are willing to be held accountable for their actions make for better long-term investments, and I am proud that the Pension Funds are once again leading the way in shareholder activism.”

Comptroller Thompson submitted the proposal, on behalf of New York City Employees’ Retirement System (NYCERS), Teachers’ Retirement System for the City of New York (TRS), New York City Police Pension Fund, New York City Fire Department Pension Fund and the New York City Board of Education Retirement System (BERS), to CVS Caremark Corporation of Woonsocket, RI, the largest pharmacy chain in the country, Rite Aid Corporation of Camp Hill, PA, another large pharmacy chain, and SUPERVALU, Inc. of Eden Prairie, MN, a food and drug store chain.

The proposal notes that the companies continue to sell cigarettes and other tobacco products, though several major prescription drug retailers have already banned sales of tobacco products in their retail outlets. Further, a number of governmental jurisdictions in the U.S. and abroad have banned or are considering legislation to ban sales of tobacco products in local retail outlets.

The proposal specifically requests that the “Board of Directors prepare a report, to be made available to shareholders by November 30, 2009, on how the company is responding to rising regulatory, competitive and public pressures to halt sales of tobacco products.”

Comptroller Thompson plans to submit the proposal to other pharmacy chains for the consideration and vote of their shareholders in the 2009 proxy season.

Collectively, the Pension Funds hold 5,270,553 shares in CVS, Rite Aid and SUPERVALU.

Trustees (chairs in bold) are as follows:

New York City Employees’ Retirement System: New York City Finance Commissioner Martha E. Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents Scott Stringer (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), Adolfo Carrion (Bronx), and James Molinaro (Staten Island); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers’ Retirement System: New York City Finance Commissioner Martha E. Stark (Chair); Deputy Chancellor Kathleen Grimm, New York City Department of Education; and, Sandra March, Melvyn Aaronson and Mona Romain, all of the United Federation of Teachers.

New York City Police Pension Fund: Mayor Michael Bloomberg; New York City Finance Commissioner Martha E. Stark; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edward D. Mullins, Sergeants Benevolent Association; Thomas Sullivan, Lieutenants Benevolent Association; and, Roy T. Richter, Captains Endowment Association.

New York City Fire Department Pension Fund: Mayor Michael Bloomberg; New York City Fire Commissioner Nicholas Scoppetta (Chair); New York City Finance Commissioner Martha E. Stark; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; John Dunne, Captains’ Rep.; John J. McDonnell , Chiefs’ Rep., and James J. McGowan, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

Board of Education Retirement System: mayoral appointees Schools Chancellor Joel Klein (Designee, Kathleen Grimm, serves as co-chair), Alan Aviles, Philip Berry, David Chang, Tino Hernandez, Edison O. Jackson, Richard Menschel and Marita Regan; Patrick Sullivan (Manhattan), Wendy Gilgeous (Brooklyn), and Joan Correale (Staten Island); and employee members Joseph D’Amico of the IUOE Local 891 and Milagros Rodriguez of District Council 37, Local 372, who serves as co-chair.

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