For the first time since the recession began, the state’s pension fund has announced that local governments will be able to contribute slightly less money to their employees’ retirement payments.
The State’s Comptroller, Tom DiNapoli, announced that the payments required by local governments and schools in New York to their retired employees will decrease by .8%, from 20.9% to 20.1%. DiNapoli says it may not sound like a lot, but it represents a turning point, for the first time since the Great recession began, employer contribution rates are declining.
“It’s good news for local governments that have ben managing budgets under tight conditions,” DiNapoli said.” That should translate into good news for tax payers as well.”
A spokesman for the State Association of Counties calls the drop in the rates “good news”, but says local governments still need to see a further reeducation in unfunded state mandates. A spokesman for the Conference of Mayors agrees, saying a “steep and sustained” drop in pension rates is needed to avoid service cuts and tax hikes.