Did You Know? Pension Contributions

Can a school district/municipal government freeze contributions to the pension fund?

The simple answer is no.  Currently, New York provides a defined benefit plan that is guaranteed by taxpayers.  The contribution rate promised to employees upon entering the pension system is constitutionally guaranteed and as a property right, cannot be diminished.    The pension system is funded by both employee and employer contributions.  An employee contributes a fixed amount for a set period of time into his or her pension system tier.   The employer then contributes the remainder of the contribution rate as determined by the pension system.  For teachers’ that is the New York State Teachers’ Retirement System (TRS),  and for other public employees the New York State Employees’ Retirement System (ERS).

The total contribution rate is based upon an actuarial analysis of a variety of financial and investment-related calculations.  This calculation fluctuates based on market performance year to year.  This leaves the employer, the local government, and the taxpayers absorbing a high level of risk as well as creating volatile budgeting cycles.

About these ads

About Mike Durant

Mike Durant was named New York State Director of NFIB in May 2011. Prior to joining NFIB as the Assistant State Director in May 2010, Durant began his career in the New York Senate working in the Office of Member Services. From there, he served in a number of positions during former New York Governor George E. Pataki’s administration. As a Research Specialist in the New York State Office of Demographic Policy, Mike was responsible for drafting a redistricting proposal for Governor Pataki. In addition, Mike served as a Research Specialist for the Empire State Development Corporation, as well as the Associate Commissioner of Human Resource Management with the New York Department of Labor. Durant also spent four years working at the Questar III BOCES as a specialist focusing on the complex formulas that drive aid to school districts across the state while also taking a lead role in the state legislative/budget process as it related to education policy. These past positions have given Mike a deep understanding of the complex political economics of the State of New York. Active in the community, Durant has served on a number of boards in both the village of Ballston Spa and Town of Milton. Durant received his bachelor’s degree from Siena College in Loudonville, New York and resides in Ballston Spa with his wife and two children.
This entry was posted in New York, Small Business and tagged . Bookmark the permalink.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s