Employers who pay into the New York State and Local Retirement System will soon find their pension contribution bills to be significantly smaller. The System has lowered the contribution rates required of state and local government entities, as reported by the Associated Press:
Comptroller Thomas DiNapoli says the average rate will decrease from 20.1 percent of salary for most public workers to 18.2 percent. For police and firefighters the employer rate will drop from 27.6 percent of payroll to 24.7 percent.
The rate reduction announcement comes as the state’s pension system hit a record high of $180.7 billion. DiNapoli says the fund’s “solid investment performance” means local taxpayers won’t have to contribute as high a percentage toward their employees’ retirement costs.
DiNapoli says that with recent investment gains the state’s pension fund is now 92.2 percent funded. That’s an increase from 88.7 percent.