I had to cut my prior post on the cost of pension enhancements short because it was already too long, and I was out of gas in any event, so I’ll finish the analysis here. To review, according to the model described in this post and present in the attached spreadsheet, I found that for those now approaching retirement from New York City, New York State and other New York local governments, the state had promised, when the employees were hired, pensions that would cost the taxpayer 8.8% of payroll for most workers, 13.2% of payroll for those in physically taxing jobs such as sanitation workers, and 28.7% of payroll for police and fire. But they didn’t set aside enough money to pay for those pensions, using the stock market bubble of the 1990s as an excuse (and still doing so a decade after it popped), as I showed in this post. In addition, the pensions were drastically, retroactively increased compared with those promised, in a series of deals between the public employee unions, representing those workers who were already or about to retire, and politicians seeking political support. At the expense of the general public, particularly those worse off, and the future, now the present. For most public employees, as this post showed, the result was pensions that, for those getting early retirement incentives, cost double what had been promised. Little of this has been paid for, and under a proposal by Comptroller Thomas DiNapoli, local governments outside New York City would not pay for another 10 years, up from the three year postponement the state legislature just passed.
So what about the cost of pension enhancements and other deals for those in physically taxing titles, police and fire? Read on.