Gov. Paterson: Corruption indictments may change the way state pension fund is run

Hank Morris, Hevesi's top political consultant, and David Loglisci, a former deputy controller for pensions, were charged were charged in a 123-count indictment with steering firms to pension fund business in exchange for tens of millions of dollars in kickbacks.

Paterson said the indictment is "so disturbing in its nature," the state should consider whether to allow the controller to remain as the sole trustee of the $120 billion pension fund.

Almost every other state has a board that oversees pension investments.

"I think we would have to take a look at that, not because of the current comptroller or presuming that any comptroller violated this duty, but because ... with a board there would be a greater set of eyes on the transactions," he said.