New York State and Local Pension Payments to Rise $900 Million.

New York State and its local governments will be paying an additional $900 million into the state's pension fund in the upcoming fiscal year. This increase is due to benefit enhancements approved by state lawmakers and the rise in public employee salaries. The contribution rates for civil employees will increase to 16.5% of payroll, while rates for police officers and firefighters will increase to 33.7% of payroll. These higher payments are a result of the reversal of a 2012 pension reform, salary growth, longer life expectancy, and underperformance in investments. The changes also apply to New York City, adding $165 million in pension benefit costs. The pension costs also reflect the impact of the stock market downturn in 2022. As of March 31, 2024, New York's pension was 93.2% funded. [Extracted from the article]

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