THE ISSUES

• The budget can be finalized as early as April 1.

• The State Senate expects to have a final version of their budget by 3/15/2025

SUMMARY ON WHAT IS PROPOSED AND THE PROBLEMS

• Year by year from 2025 thru 2032 there will less and less money going into the pension  

• Then in 2033 NYC contribution responsibility greatly increases

• This results in a  more than $5,000,000,000 difference in required funding from 2032 to 2033

• They claim that the City actuary created this to smooth out the pension contributions in the next 20 years

• When one looks at the graph below, this smoothing results in cliffs not a smooth transition

• In the past those who wanted to borrow from the fund discussed actuarial smoothing since no one wants to hear about 

borrowing from pension funds (1)

• The actuary may have ensured that the numbers add up over the next 20 years, BUT

WHERE IS THE MONEY FROM DECREASED CONTRIBUTIONS GOING?

HOW WILL FUNDS BECOME SUDDENLY AVAILABLE TO CONTRIBUTE AT THE HIGHER AMOUNTS?

WHAT ACTIVE OR RETIREE BENEFITS CAN BE IMPACTED TO ENSURE THE MONEY IS THERE?

PENSIONS ARE GUARANTEED BY THE STATE CONSTITUTION, BUT 

THE STATE LEGISLATURE CAN CALL FOR A CONSTITUTIONAL CONVENTION AT ANY TIME

THIS CAN OPEN THE POSSIBILITY TO CHANGE THE PENSION GUARANTY

TIME TO ACT !