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September 3, 2010

DiNapoli: local governments face huge jump in pension costs

ALBANY — New York's comptroller is warning that local governments across New York will be facing large hikes in their pension costs in a couple years, thanks to the state's recession-battered pension fund.

By early 2012, Thomas DiNapoli says municipalities will have to pay more than 16 percent of their payroll toward pensions, up from just under 12 percent this coming year. For fire and police pensions, which often are more generous, DiNapoli says the rate will rise from 18.2 percent of payroll to 21.6 percent.

As a result, DiNapoli says many communities will have to raise property taxes so that they can meet their legal obligations to their retired employees.

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Information from Albany Times-Union

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