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New York City Comptroller William C. Thompson, Jr., on behalf of the City’s five Pension Funds, today announced that the Toys “R” Us has agreed to adhere to policies prohibiting discrimination based gender identity.

Toys “R” Us, which is based on Wayne, NJ, notified the Comptroller on Friday that it is taking steps to adhere to the Equality Principles, a 10-point code of conduct aimed at advancing workplace equality by barring discrimination based on sexual orientation and gender identity.

“Our policies and practices – existing and as so clarified – will encompass, in all material respects, the ten principles included in your shareholder proposal,” Toys ‘R’ Us wrote in a letter to the City. The company outlined changes it is making to clarify that its policy and practices of non-discrimination cover gender identity.

The announcement comes after efforts by the City’s Pension Funds – the New York City Employees’ Retirement Fund (NYCERS), Teachers’ Retirement System (TRS), New York City Police Pension Fund, New York City Fire Department Pension Fund, and Board of Education Retirement System (BERS) – to urge three companies to comply with the Equality Principles.

“Toys ‘R’ Us has taken a significant step forward to value employees,” Comptroller Thompson said. “This represents not just a victory for the City, and not just for all lesbian, gay, bisexual and transgender Toys ‘R’ Us employees, but for everyone who is part of the struggle to advance equal treatment for the LGBT community. This decision sends a message that corporate America must be a leader, and not a roadblock, in the path to equality.”

“It’s great news that a company with so much public visibility has vowed to bar discrimination based on sexual orientation and gender identity,” said NYCERS Trustee and New York City Public Advocate Betsy Gotbaum. “But it shouldn't take lawsuits and shareholder pressure for companies to treat all their employees fairly, especially companies like Toys R Us, with whom our kids grow up.  Companies should follow fair labor and hiring practices because it is simply the right thing to do.”

The City is withdrawing its resolution. Initially, after receiving the City’s proposal, Toys “R” Us sought approval from the federal Securities and Exchange Commission to omit the proposal from its 2005 proxy. A decision had yet to be rendered. The City’s funds have about 650,000 shares valued at more than $15.5 million in Toys “R” Us.

This is the City’s second success to urge companies to adhere to the Equality Principles and bar discrimination based on gender identity. Last week, Thompson announced that the City withdrew its shareholder resolution filed withthe Cerner Corporation of Kansas City, MO, after the company agreed to comply with the Principles. A third resolution was filed with Delta Airlines of Atlanta, GA, and expected to be voted on by shareholders at the company’s annual meeting this Spring.

Over the last few years, the City’s has urged dozens of Fortune 500 companies to adopt policies that explicitly prohibit discrimination based on sexual orientation. To date, 30 companies have amended or agreed to amend their policies.

This season, the City targeted: AGCO Corp. of Duluth, GA; Alltel of Little Rock, AR; ExxonMobil of Irving, TX; Alcoa of Pittsburgh, PA; Dana Corp. of Toledo, OH; BB&T Corp. of Winston-Salem, NC; Owens-Illinois of Toledo, OH; EchoStar Communications of Englewood, CO; Coventry Healthcare of Bethesda, MD; Harrah’s Entertainment of Las Vegas, NV; Universal Health Services of King of Prussia, PA; Advance Auto Parts of Roanoke, VA; Land America Financial Group of Richmond, VA; and United States Steel of Pittsburgh, PA. Thompson, as well, joined Trillium Asset Management in co-sponsoring a proposal submitted to Reliant Resources of Houston, TX.

Of this group, Reliant, Altell, US Steel, Alcoa, Owens-Illinois, Coventry Healthcare, Reliant, Dana, and BB&T agreed to change policies to bar such discrimination. Harrah’s subsequently made its proposal public, so the City withdrew its proposal.

The trustees of the city’s five pension boards are:

New York City Fire Department Pension Fund: Comptroller Thompson, 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; Peter Gorman, President and Captains’ Rep., Nicholas J. Visconti, Chiefs’ Rep., and Stephen J. Carbone, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

New York City Police Pension Fund: Comptroller Thompson; Mayor Bloomberg; Commissioner Stark; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edwin Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

NYCERS: Comptroller Thompson; Commissioner Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents C. Virginia Fields (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, Carroll (Carl) Haynes, President, International Brotherhood of Teamsters, Local 237.

TRS: Comptroller Thompson; Commissioner 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.

BERS: Schools Chancellor Joel Klein, Alan Aviles, Phillip Berry, David Chang, Tino Hernandez, Souza Kappner, Richard Menschel and Marita Regan; Borough President appointees Jesse Mojica (Bronx), Martine Guerrier (Brooklyn), Jacquelyn Kamin (Manhattan), Michael Flowers (Queens) and Joan Correale (Staten Island); and employee members Thomas J. Malanga, International Union of Operating Engineers, Local 891, and Milagros Rodriguez of District Council 37, Local 372.

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