Please ensure Javascript is enabled for purposes of website accessibility
Home / Today's Top Stories / State lowers pension contribution rates

State lowers pension contribution rates

State Comptroller Thomas DiNapoli Thursday announced that employer contribution rates for the Employees’ Retirement System and the Police and Fire Retirement System would decrease again in 2010, but he added a dose of caution.
The strength of the $153.9 billion Common Retirement Fund has enabled DiNapoli to lower the average ERS rate to 7.4 percent from 8.5 percent of payroll, while the average employer contribution rate for the PFRS will fall to 15.1 percent from 15.7 percent.
“The fund continues to be one of the strongest public pension funds in the United States,” DiNapoli said in a statement. “Last year, we were able to lower the employer rates, and this year, we’re lowering them even more. The lower rates are good news for state and local governments, and good news for taxpayers.”
The comptroller, however, cautioned about next year. “If the economy continues to drag,” he said, “we will not be able to avoid rate increases in the future. I’ve got some advice for the state and for local governments: plan carefully for the future.”
DiNapoli estimated this year’s rate reductions will save state and local government taxpayers roughly $300 million combined. The state will save $120 million, while local governments will save a combined $180 million.
“The reduction in pension rates announced today is much-needed good news for cities and villages,” said Peter Baynes, New York State Conference of Mayors executive director.
“Since pension costs are one of the largest components of municipal budgets—and, on average, equal to 20 percent of a city’s property tax levy—these lower rates will help alleviate pressure on the overburdened property tax,” Baynes said.
DiNapoli noted that the fund posted a 2.56 percent return for the fiscal year ended March 31, 2008. Contributions from the 3,021 state and local government employers in the fiscal year ended March 31, 2008 totaled nearly $2.7 billion, and contributions from the system’s members totaled roughly $265.7 million.
He said the system paid out more than $6.8 billion in benefits during that period.

(c) 2008 Rochester Business Journal. Obtain permission to
reprint this article.

State lowers pension contribution rates

State Comptroller Thomas DiNapoli Thursday announced that employer contribution rates for the Employees’ Retirement System and the Police and Fire Retirement System would decrease again in 2010, but he added a dose of caution.

x

Check Also

Viewpoint: It’s time to call out ageism for the sake of our wellbeing (access required)

“Everything you know about aging is wrong. It’s not your fault. Everything you’ve been taught about aging is wrong.”I imagine ...

It’s time to reconsider how we measure our economy’s success (access required)

I’ve never formally studied economics, so until fairly recently I assumed (like most people?) that rising GDP was an inherently ...

NextCorps’ Embark Accelerator positions Rochester as no-code software development hub (access required)

In its first year, Nextcorps’ Embark — a business accelerator program that fosters the startup of viable software companies — ...

Best Places to Work For DEI honorees announced (access required)

The Rochester Business Journal has announced the honorees for the inaugural Best Places to Work For DEI awards. This regional ...

Five Star Bank opens Syracuse office  (access required)

Five Star Bank has expanded into the Syracuse market with a new commercial loan production office in the city’s historic ...

Good paying jobs will reduce violence (access required)

The best way to stop a bullet is with a good paying job.Of the five poorest zip codes in New ...

Sales, profit up for Xerox in Q4  (access required)

Resilient demand and improvements in supply chain conditions drove solid fourth-quarter revenue and profit growth at Xerox Corp.   The ...