New York State Comptroller Announces Decrease in Pension Contribution Rates

The New York State Comptroller recently announced that the contribution rates paid by state and local governments towards New York’s pension funds will decrease.

According to the Comptroller’s office the average rate of contribution will decrease to 18.2% for most public workers from 20.1%, the comptroller said. For police and firefighters, the employer rate will drop to 24.7% of payroll from 27.6%.

The decrease in contribution rates is expected to have immediate impact on local governments outside New York City. In New York City, pension contributions will likely remain the same thanks to the city’s separate pension system. In recent years, localities and school districts have faced increases in their pension cost burden, partly due to the projected costs from a boom in retirees. Now, however, the rate reduction announcement comes as the state’s main pension fund reached a record high of $180.7 billion.

Thus, according to State Comptroller Thomas Di Napoli, the healthy state of the fund means local taxpayers won’t have to contribute as much. This is due in part to recent investment gains, which has increased the state’s pension fund to 92.2% from 88.7%.

Though New York’s pension fund is regarded as one of the best-funded in the country, opponents question the fund’s long term outlook. Indeed, skeptics argue that the fund assets, being largely comprised of various investments, presents a high risk for a high reward.

For additional information about state pension information and how it may affect you, please visit the state comptroller’s website. Additionally, if you or a loved one have any questions regarding your workers benefits, social security, or disability benefits contact our experienced attorneys at The Law Offices of McIntyre, Donohue, Accardi, Salmonson, & Riordan, LLP. Call (866) 557-7500 for a consultation.

NY Senator Introduces Bill to Help Alleviate Financial Burden on Americans with Disabilities

Senator Charles Schumer has recently introduced a new piece of legislation to the United States Senate. The proposed bill aims to assist New Yorkers with disabilities and their families in their preparations for the future. The bill, titled, Achieving a Better Life Experience Act (ABLE) creates a tax-advantage savings account for people with disabilities.

According to reports, the bill would authorize the creation of a savings account similar to an Individual Retirement Account. The saving account would allow parents to put away more money for their disabled child, without paying taxes on those contributions. Furthermore, the deposits would not put them over a threshold for what they stand to receive for social security disability.

Individuals that have been diagnosed with a mental or physical disability can create an account. Those individual’s beneficiaries can also establish an account. Anyone would be able contribute to the account. More importantly, the funds would be able to be withdrawn tax-free and used for expenses such as education, medicine, and transportation.
According to the CDC, there are more than 43,000 people with disabilities in western New York alone, which includes but is not limited to Autism, Down Syndrome, and Fragile-X.

In short, Senator Schumer’s bill seeks to alleviate the difficult proposition which many families of disabled Americans face: Choosing between paying for daily living expenses and saving for their child’s future.

For more information on ABLE or for any information on Social Security disability, contact an experienced social security disability attorney at The Law Offices of McIntyre, Donohue, Accardi, Salmonson, & Riordan, LLP. Our firm handles social security and disability claims throughout the five boroughs of New York City, including Manhattan, Brooklyn, Queens, the Bronx, and Staten Island, in addition to both Nassau and Suffolk Counties on Long Island. For more information please call (866)-557-7500 or click here to speak with our office.

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