National Association of State Budget Officers:
NYSAC: Achieving Balance With Pension Reform (PDF REPORT)
For more than a decade county government officials have also raised significant concerns about high pension contribution cost increases.These increases largely stem from a combination of generous pension benefit expansions enacted by the State Legislature in 2000 and inconsistent investment returns over this same time frame.
Achieving Balance With Pension Reform
Less than a year after the Legislature significantly expanded pension benefits in 2000, largely based on the assumption that record investment returns from the booming 1990’s would continue (or the gains would be preserved), the dot.com bubble burst on Wall Street, the terrorist attacks of 9/11 occurred, the country slipped into recession and the common retirement fund experienced three consecutive years of negative returns.
Since then, county pension costs will increase nearly 2,400 percent by 2014, rising from an annual contribution of $47 million to nearly $1.2 billion. The average annual increase in pension costs for counties will exceed 30% between 2009 and 2013 and for the time being represents the fastest growing segment of county budgets.
NYSAC is calling for pension reforms that will effectively balance the important benefits of the State’s pension system in a way that is more affordable for the property taxpayer. (Dave Lucas)
Pension bills for New York’s local governments and school districts will rise by a combined total of at least $359 million as a result of the rate increase announced by the state comptroller this week, based on the latest available salary data from the state pension system. The increases are payable by February 2013, but most counties and municipalities will accrue the added cost next year, while schools will pay the higher rates in their 2012-13 budgets. (New York City, which has its own pension funds, is excluded from the total.)
The following table estimating the impact of 2012-13 increases tax-funded contributions to the New York State and Local Employees Retirement System (ERS) and Police and Fire Retirement System (PFRS) updates the one in yesterday’s post here, which did not include schools.
Scott Beaulier | Sep 26, 2011
Eileen Norcross | January 13, 2011
Senior Research Associate Maria Doulis pens an op-ed on the need to reform public employee pensions that costs state and local governments nearly $1.5 billion.
This report presents eight facts about retirement benefits for New York State and local employees intended to stimulate a substantive discourse on pursuing changes to prevent underfunding of the pension systems and to make retirement benefits more fair and affordable.
In recent years, one of the fastest growing expenses for New York City government has been retirement benefits for municipal workers. This growth is driven mainly by investment losses in the pension funds and the enrichment of retirement benefits. As New York taxpayers have a critical interest in understanding the reasons behind the explosion in retirement benefit costs and what can be done to limit future liabilities, this report summarizes 10 facts about retirement benefits for New York employees.