Niagara Gazette

Local News

April 22, 2013

State official sounds off on local pension relief

Niagara Gazette — Pension relief is not in the immediate future for cash-strapped local governments.

Eight months before it has to adopt the 2014 county budget, the Niagara County Legislature already knows it'll have to come up with almost $16 million to pay next year's bill from the state Local Employee Retirement System.

In a carryover budget, that one spending line consumes 20 percent of the county tax levy, legislator Richard Updegrove, R-Lockport, observed.

The bills going out to counties, cities, towns and villages will not be lower in 2015, according to Thomas Nitido, state deputy comptroller for the New York State and Local Retirement System. That is the last year in a five-year plan by the comptroller, the sole trustee of the state Common Retirement Fund, to recover a $45 billion loss in fund value in 2008-09.

Nitido addressed the legislature last week to explain L.E.R.S., how it's funded and why the comptroller won't reduce contribution rates charged to 3,000 local governments statewide.

L.E.R.S. is a traditional, defined-benefit plan that guarantees retired government workers specific monthly benefits for life, regardless of economic conditions. The state Constitution prohibits benefit reduction.

Pension funds are invested and market performance drives the contribution rates that are charged to employers. Contribution rates are expressed as percentages of a municipality's annual payroll. 2014 average pension bills will consist of two charges, 28.9 percent of police and firefighters' payroll, and 20.9 percent of all other payroll.

L.E.R.S. paid out $8.9 billion in benefits to retirees last year. According to Nitido, $7.2 billion went to retirees who reside in New York state.

The average pension is $20,200 for retired local government workers and $42,000 for retired police and fire officers. The averages for 2012 retirees are $29,600 and $49,000.

Of every pension dollar paid out in 2012, 15 cents came from employers, 3 cents came from employees and 82 cents came from fund investment earnings, Nitido said. The national average is 65 percent from investment earnings, he added.

Text Only | Photo Reprints
Local News
Featured Ads
Seasonal Content
House Ads
AP Video
Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming UN Security Council Calls for Gaza Cease-fire Traditional African Dishes Teach Healthy Eating 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow
House Ads
Night & Day
Twitter News
Follow us on twitter
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Front page

Do you think cigarette sales to non-Native American customers should be taxed on reservations?

Yes. Items should be taxed like they are everywhere else.
No, the indian reservations are sovereign land and they are selling them on their land.
Not up to me. Native Americans decide the rules on their land.
Don't care. Smoking isn't good for you.
     View Results