Study Says New York Cities To Be Hit Harder By Pension Costs

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.)

  • ham07

    yep, muni workers the well off of NYC. After slaving away and risking life and health and raising a kid in public school in a 600 sq feet 1 bed jr. apartment and retiring with a pension which with inflation will be a stipend is getting too good a deal. First, they aren’t paid much for their 20 years of service, so sounds like the city wants to welch on their end of the bargain when it is convienent.

  • Jerry

    What a surprise, what do you expect if you make promises to muni workers that we can’t keep.
    What other enterprise would pay their employees handsomely for poor to disfunctional performance.
    They quickly go bankrupt?
    Privatization is the only hope as our spineless.unqualified legislative body hasn’t a clue//
    Look very closely at the house sales and mass exodus of many,many retirees and young people.
    Then look closely at those who are either moving in and buying.
    Those buying are muni workers who drain the system,those leaving are those who would fund the system.
    Need I say more???

  • liwingnut

    Get out before it’s too late…….

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