New York Lowers Pension Costs for Government Employers
Down 1 percentage point, though everybody thought it would go up
New York state Comptroller Thomas DiNapoli has unexpectedly lowered the employer contributions to the pension system made by governments, school districts and their taxpayers, which have all been slammed by years of pension cost increases.
The surprise move for the 2014-15 fiscal year will be a welcome break for governments and schools that have been bracing for another increase. Those pension costs, along with dwindling populations and tax revenues, are driving some local governments toward insolvency, although none has declared bankruptcy as have some municipalities in other states.