New York Pension Plans Create a Stir
In "Library retirees' serious ca-sssh" (February 23, 2009), New York Post reporter Chuck Bennett writes that several now retired employees of the New York Public Library System are pulling in pensions in excess of $180,000 per year. That kind of money buys a lot of books indeed. Bennett adds that New York City's contribution of $320 million last year includes "$17 million to support the pension funds of New York's three library systems."
In a related piece, the same reporter informs that "more than 10,000 retired cops - all under the age of 50" account for one fourth of New York City's tab for police pensions. Taking into account a projected liability of $7.8 billion for police pensions by 2013, or "11 percent of the entire projected $70 billion budget," you begin to wonder how the Big Apple can keep up. Firefighers' retirement benefits add to the fiscal pain. Referring to both Mayor Bloomberg and Governor Paterson, Bennett suggests that reform is inevitable. Either people work longer before being able to retire (not always feasible for individuals with physically taxing jobs) and/or they contribute more (if they are doing so at all) to help plan for their Golden Years. See "Time Bomb of Young Cops: Under-50 Retirees Pose Di$aster Threat" (February 23, 2009).
Clearly, there are tough choices ahead to be made.
- How will younger workers in these fields react if their benefits are cut in order to fund promises made to older peers?
- Will taxpayers be forced to choose among public services?
- Will it be harder to attract and retain qualified state, county and city workers?
- Will competing unions negotiate against each other in order to win scarce resources?
