NYC’s Bloomberg Faces Rising Pension Costs in 2013 Budget
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New York Mayor Michael Bloomberg may have expected an easier time balancing next year’s $70 billion budget after trimming a $4.6 billion deficit to $2 billion in November. Now a new pension formula may widen that gap.
New York owes its five pensions about $2 billion more than previously budgeted because officials have been too optimistic in assuming an 8 percent return on fund investments, Chief Actuary Robert North has determined. A more realistic expectation would be 7 percent, North said.