City Pension Cost Could Soar to $50 Billion

WNYC News | Jul 12, 2010

New York, NY —

Mayor Bloomberg says the city's going to have a big problem trying to pay the pensions of its workers.

REPORTER: The mayor estimates future health care benefits for retirees could total as much as $50 billion. He says the state legislature is partly at fault for the city's predicament for guaranteeing benefits to city employees and forcing the city to pay for them.

But he also suggests that municipal unions need to start accepting less generous compensation packages.

BLOOMBERG: If we enhance the pension system, then we can't afford to pay more in salaries. If we enhance the pension system and salaries, we can't afford to have as many employees, or to provide as many services. And that's what everybody is unwilling to face.

REPORTER: The mayor says the city may need to raise taxes to keep up with pension costs. And that an economic slowdown would only make the problem worse.

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