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NYC Pension Costs Rising

 
Posted Monday, August 4th 2014 @ 5am

Pensions for retired workers now account for 11 percent of New York City's budget.

A New York Times review shows the city will set aside more than $8 billion for pensions next year.  Back in 2000, pension costs chewed up less than 2 percent of the city's budget.

The problem is the city's investment strategy hasn't kept up with rising costs.

The review blames politics, since each of the investment funds has its own board of trustees and receives additional input from lawmakers and consultants.

With assets falling further behind obligations, the Times called it "a troubling trend that could eventually ripple across the entire city budget."

However, Mayor Bill de Blasio hasn't paid much attention to the issue yet.

 

Source:  New York Times

 

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