The report from Retirement Security NY, an initiative launched by NYC Comptroller John C. Liu, says City contributions to employee pension funds will increase through FY 2016, after which they will decline as a percentage of the City’s expenditures and revenues. As a percentage of payroll, total employer contributions will fall from 32.4% in FY 2010 to 14.2% in 2060.
The study found that by FY 2060, pension costs as a percentage of the City’s budget will have declined to 3.3% of general fund expenditures compared to 10.6% in FY 2010. The long-term decline in pension costs is primarily due to the introduction of new, less expensive benefit plans that became effective between 1995 and 2009.
Over time, the Police and Fire Pension Funds will experience the most significant decreases in employer contributions. As a proportion of payroll, the Police fund’s rate will fall from 65.1% in FY 2010 to 24.2% in FY 2060, and the Fire fund’s rate from 83.1% in FY 2010, to 25.4% in FY 2060.A summary of the report findings is at http://www.comptroller.nyc.gov/press/pdfs/NYC_PensionSustainability_Summary.pdf.
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