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 McIntyre, Donohue, Salmonson, Accardi, & Riordan, LLP.