A perk of working in the public sector is the promise of a lifetime pension. But cities and states across the nation have been lax about putting aside money to pay for these benefits, and their obligations now total $5 trillion. New York is no exception: the state and city face a mounting pension burden that must be dealt with, sooner or later.
The Facts You Need to Know
Exceeds: New York City puts aside more than $9 billion annually to cover its pension costs–but paid out more than $14 billion in 2016. Read more.
Conflict: Elected officials face a conflict of interest when they negotiate contracts with public-sector unions because they raise political money from the same entities. Read more.
Costs: New York State’s promise to cover health-care insurance costs for retirees now amounts to $4,700 per resident in unfunded debt. Read more.
“These systems have grown so large, with so many workers earning new pension credits for their approaching retirements, that states’ obligations to these workers are growing relentlessly.”
State and local governments face a $5 trillion unfunded pension liability. @ManhattanInst’s @CityJournal’s @DiSalvoCCNY says paying for this will force cities to put basic services, like fire and police on the chopping block: pic.twitter.com/wSVfoYlPea— John Stossel (@JohnStossel) October 21, 2018
The Past is Present
“Don’t believe the public-sector unions when they say that worker pensions are modest.”
And in other news...
“Gov. Andrew Cuomo went full-bore against his Republican challenger Marc Molinaro Tuesday during a televised debate in which both men threw accusations of corruption and talked over each other about mass transit, taxes and health care.”