How NYC’S Pension Costs Threaten Its Future

“From 2014 through fiscal 2017, for the first time on record, New York City’s pension contributions exceeded actual and projected (mostly bond-financed) capital expenditures. In other words, the city has been spending more to meet its pension obligations than to build and renovate bridges, parks, schools, and other public assets. In fiscal 2018, roughly 57% of contributions will be needed simply to continue paying down what the city still owes its pension systems, in order to continue paying benefits promised to retirees. The rest will cover the “normal” cost of added benefits earned by city employees. In other words, if the pension systems had been fully funded in the past, the city would have saved more than $5 billion.”