Friday, March 15, 2013

Legislative leaders support Cuomo's pension smoothing | The Ithaca Journal

  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

4 comments:

Anonymous said...

Bernie Madoff will be happy to learn that all he did was "borrow" money from one investor and pay it to another.

This pension raiding gimmick is not "borrowing", it is raiding the pension fund. A fund that should always go up, or at least stay the same, as the pay outs are always going up.

Instead, last year it lost billions. And now, Cuomo's "balanced budget" is going to continue that practice.

And like Bernie Madoff, Cuomo will be paying dividends with the money of other investors, hoping and praying for an unrealistic rate of return in the future.

Mike Flynn 'Middle Class Mike' said...

“Pension Smoothing versus, bailouts”

Pension Smoothing will make Mayor's and other leaders responsible for making the hard decisions to get budgets into line. Syracuse Mayor Stephanie Miner was looking at bankruptcy rather then make those hard decisions, well the Governor right on 'Pension' smoothing and others have been wrong. make the tough calls and quit looking for handouts. A very Republican position by the way, until Republicans need money like Democrats in NYS.

Mike Flynn 'Middle Class Mike'

Anonymous said...

Mike will have to explain how raiding the pension fund make mayors responsible for making hard decisions?

It actually would do the opposite, by allowing mayors to kick the can down the road by doing back door gimmicky borrowing. Borrowing that will leave the pension fund empty with the tab in our children's hands.

Mike Flynn 'Middle Class Mike' said...

ANON 12:44 PM nothing could be further from the truth, it allows Mayors to contribute a predictable amount to P-fund, while they adjust their Cities budget to reflect what they can afford in other area; in short it buys time and helps them avoid bankruptcy like Syracuse faces now. Try reading about it before you make a comment that doesn't reflect what P-fund is attempting to accomplish. What's your plan?

MCM