ALBANY, NY (AP) – An analysis by the Manhattan Institute says New York’s cities will be hit especially hard by rising public pension costs.
The institute’s E.J. McMahon says cities that already have the most fiscally stressed local governments will be hit with much higher employer contributions to public pensions because of declines in stocks and other investments.
State Comptroller Thomas DiNapoli, the sole trustee of the massive state and local pension for public workers, ordered the rise in employer contributions to protect the fund.
But those contributions are higher for police and firefighters. And city payrolls are dominated by police and firefighters and retirees from those jobs.
When the return on investments drops dramatically, employers must pay more into the pension system.
(Copyright 2011 by The Associated Press. All Rights Reserved.)