The NY Times is reporting on an analysis by the NYS Comptroller's office that shows pension cost will triple - that is 3x - triple with a T, in the next few years.
“It’s alarming, eye-popping and unthinkable,” said Stephen J. Acquario, executive director of the New York State Association of Counties. “To manage that liability in the face of this deep decline in government revenues is going to be a challenge,” he said. “Where is this money going to come from?”Pension contribution rates are predicted to increase from 7.4 to 30.3 percent of payroll cost. Brace for impact!
“It is staggering,” said Peter Baynes, executive director of the New York Conference of Mayors. “The only way they’re going to deal with it is through property taxes and reductions in the work force.”The impact will be even greater for a city like Watertown due to a large percentage of staff being uniformed fire and police where pension cost are considerably higher.
And on the state level, well, there was unprecedented tax increases last year coupled with a huge increase in spending, they will have an even deeper hole. They will need to fill the fiscal bridge to nowhere gap left by the stimulus spending binge!
Read more: The pension bomb goes boom
4 comments:
there is terrible. paterson couldn't get his act together and propose tier v before the assembly left.
tier V is the last of their problems today. Wait, maybe that's the reason the Renegades did this-to stall tier V approval. worth looking into.
The State pension system with it's defined benefit is an old and antiqued system. Not having to "pay" into a system is unfair to the rest of the taxpayers, Piling on additional credits with other public service jobs, and working OT just before retirement will someday bankrupt the system.
And the Senate and Assembly will also be at the Trough when it comes time to collect their pension.
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