Pension Crisis

The Story

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

  1. 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.

  2. 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.

  3. 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.”

Steven Malanga, Manhattan Institute senior fellow

Steven Malanga and Dan DiSalvo join John Stossel to talk about America’s underfunded government-pension systems—the costs of which are consuming larger portions of state and city tax revenues, squeezing budgets, and limiting vital public services.

Twitter Take

The Past is Present

Pension Propaganda By Steven Malanga (Summer 2011)

“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.”