- Thomas DiNapoli
ALBANY – It looks like Jamestown and other local governments across the state will get a break in the costs they pay to cover employee pensions in 2016-17.
State Comptroller Tom DiNapoli released a recent report that said local contributions to the state pension system will see a decrease. However, DiNapoli tempered the report by saying the state’s nearly $185 billion pension fund is expected to generate less money in coming years, as the assumed rate of return for the fund fell from 7.5 percent to 7 percent.
For 2016-17, local governments will have to pay an average 15.5 percent of their payroll toward pensions, down from 18.2 percent in 2015-16. That 15 percent reduction is the steepest drop in more than a decade.
For police and firefighters, who typically earn more and have heftier pensions, the cost will go to 24.3 percent from 24.7 percent of payroll. Numbers are statewide averages and may vary a bit in each municipality.
The lowered requirements are stemming from the continued long-term growth in stock market values since the 2008 recession.
On a related note, The state Teachers Retirement System, operated separately from the comptroller’s office, recently said school districts in the 2015-16 fiscal year will contribute 13.26 percent of payroll, down from 17.53 percent.
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