Pension Problems

The Story

Photo: cnythzl/iStock

Mayor de Blasio has thrown his support behind legislation to set up retirement accounts for private-sector workers whose employers don’t sponsor such savings plans. The Retirement Security for All program would deduct money from each paycheck and put it in an IRA administered by a mayor-appointed board. But given its underfunded pension obligations to its own employees, New York City should not set itself up as a money manager for the general public.

The Facts You Need to Know

  1. Debt: New York City faces enormous long-term employee-retirement benefit obligations without sufficient reserves to pay them. Read more.

  2. Options: The private sector offers numerous low-cost solutions for individuals who want to save for retirement. Read more.

  3. ERISA: The city’s plan appears to conflict with federal law governing the administration of private-employee retirement accounts. Read more.

“New York City is, officially speaking, insolvent, with liabilities exceeding assets by ­almost $200 billion.”

Nicole Gelinas, Manhattan Institute senior fellow

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.”

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Photo: Moving Picture Institute

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