Skip to comments.State and local taxpayers in New York will be on the hook for $250 billion in future costs...
Posted on 09/06/2012 6:58:25 PM PDT by neverdem
State and local taxpayers in New York will be on the hook for $250 billion in future costs associated with exploding public retiree health benefits, a new report predicts
New York City, according to the Empire Center for New York State Policy, faces $84 billion in unfunded retiree health care costs
ALBANY Exploding public retiree health benefits will cost state and local taxpayers $250 billion in the coming decades, a new report projects.
New York City, according to the report by the Empire Center for New York State Policy, faces $84 billion in unfunded health insurance costs for retired public workers over the next 30 to 40 years.
The retiree health care iceberg is getting bigger and bigger and more dangerous with each passing year, said E.J. McMahon, a senior fellow with the Empire Center.
The state, including the SUNY and CUNY systems, will be saddled with $73 billion in costs, according to the report.
McMahon warned that most governments have little money set aside to pay these costs and could meet fiscal ruin if nothing is done.
It can be changed, but the problem is nobody is making the effort to change it, McMahon said.
It involves doing battle with the unions and unions resist change, he added.
The report recommended existing employees and retirees pay a greater share of their health care costs and that retiree health benefits for newly-hired workers be eliminated.
Medical trust funds, the report recommended, should be created to provide health insurance coverage to new retirees.
Stephen Madarasz, a spokesman for the Civil Service Employees Association, blasted the Empire Report as alarmist and stressed that retiree health health benefits were the subject of collective bargaining agreements.
It is typical of the Empire Center to overstate the problem and come up with a solution that is really about undermining the rights and benefits of workers, Madarasz said.
Earlier this year, Gov. Cuomo brokered a legislative arrangement with lawmakers that created a new pension tier for incoming public workers which, along with other cost saving moves, offers the future employees a choice between a 401k-like plan or a less-lucrative pension.
The pension tsunami I have been yelling about for years? Is it finally about to become a reality?
Health care benefits for retirees are a whole different story, since they aren't financed through the state's pension system. I believe they are funded on a "pay as you go" system for public agencies.
Well, you can get off the hook by moving to another state. Many do.
And because of NY’s zombie-like tendency to vote Democrat, there is little chance of a serious reform. It will all go on until one day when it can’t.
Isn't that special?
FReepmail me if you want on or off my New York ping list.
Taxes & scandal, it's NY!
Thanks for the ping!
Towns, cities and states should require the retirees to continue to live in the town/city/state that’s paying their pensions. These NYC/NYS (and other states and cities) have to pay out huge pensions to folks who retire and move to the south and southwest where cost of living is cheaper while they suck the northern jurisdictions dry with those pensions. AND change the towns/states they move to. Make them stay in NY in retirement or take a significant reduction in pension.
shoot....anyone dolt can do that...
Emblem/HIP is planning on a 40% rate increase!!!
These charges are bullcrap! The #ing lazyass commies can go straight to Hell!
>> Towns, cities and states should require the retirees to continue to live in the town/city/state thats paying their pensions.
They should be forced to pay for the crap disaster of Socialism they voted for. This is Greece #ing redux. To Hell with the takers.
....................Make them stay in NY in retirement or take a significant reduction in pension..............
Or at least consider it NY derived income, subject to NY tax regardless of where you live, with tax withheld each month.
Then let the legislators decide how to allow the out of state resident to be forced to declare NY based income, and pay tax on that income, regardless of the taxes due to the resident state.
“Or at least consider it NY derived income, subject to NY tax ...” That works!
I really do get sick of folks working for ANY state in the Northeast where salaries and taxes are high, then retiring to the South (bitching about the south all the while) where the cost of living and taxes are really low vs. NY and the Northeast. And, sorry to say, that includes quite a few from my own family.
Any NY/NE style tax on income derived from that state would eventually color how those folks vote while employed by and in the state.
No big deal. That will only be $1 million in 2012 dollars.