While Gov. Andrew Cuomo is offering a pension smoothing proposal to local governments, perhaps schools would be the most immediate beneficiary of the plan.
But the state Teacher’s Retirement System is taking a wait-and-see approach on Cuomo’s plan, saying that it has worked hard to keep its pension plan fully funded.
“NYSTRS will thoroughly review the governor’s proposal for a flat rate pension contribution from participating employers,” the fund said in a statement today. “This review will be weighed along with the system’s fiduciary responsibility to ensure the long-term soundness of the plan.”
The $88 billion teacher’s pension fund is increasing costs nearly 40 percent next school year on employers. If schools entered Cuomo’s plan, the increases would be limited in the near future, but would higher in future years when costs are set to decrease anyhow.
Comptroller Thomas DiNapoli has also been cautious about Cuomo’s plan, saying earlier today that he has concerns. The state’s pension fund, roughly $150 billion, covers about 1 million current employees and retirees.
The school pension fund covers about 149,000 retirees and 277,000 active members.