Looks like "pension smoothing" will pass the Legislature and if the Comptroller agrees, local governments will have to decide on the plan to lower current pension contribution rates by agreeing to a 25 year schedule that could cost more in the long rung
Critics says its borrowing against the future. It is...But the question will be, do you want to do that in exchange for a more comfortable rate now and more predictable rates in future years.
The plan is backed by the NYS Conference of Mayors and other groups, while some mayors and others oppose the scheme.
The biggest question is whether this would stand for 25 years, or would there be another "crisis" in a few years and those cities that toughed it out now hoping for lower rates later, would just get lumped in with the Yonkers and Buffalos of the world.
That to me is the question. That its borrowing against the future is not in doubt, but that's done all the time.
Legislative leaders support Cuomo's pension smoothing | The Ithaca Journal | theithacajournal.com