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NYC Pension Costs to Balloon After Worst Returns Since 2009

Aug. 16, 2022, 6:57 PM

New York City’s pension costs will rise by about $6 billion over the next three fiscal years as high inflation and fears of a recession have hammered the city’s retirement plans.

Five of the city’s pension funds lost 8.65% for the fiscal year, the most since the financial crisis. Taxpayer contributions of $861 million in fiscal year 2024, $1.97 billion in 2025 and $3.02 billion in 2026 will be required to buoy the pension funds, according to a city bond offering document. The funds count on a 7% annual assumed rate of return.

The rising pension costs threaten to strain ...