Why does New York City spend so much on pensions?

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Posted 9 years ago

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Several factors have caused pension costs to increase. The employer contributions to the City's pension funds have been increasing steadily since FY 2001, partly due to lower than assumed investment returns for the FY 2001 to FY 2009 period. Benefit increases granted to members were also a significant reason for the increase in employer contributions during this period, in addition to other less significant factors like actuarial losses, and increases in administrative and investment expenses. For a detailed analysis, please see "The $8 Billion Question: An Analysis of NYC Pension Costs Over the Past Decade" published by the Comptroller's Office in April 2011 and available at http://www.comptroller.nyc.gov/rsnyc/...