NYC Pension Costs May Increase After Lower Returns, Mayor Says
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New York’s 8 percent assumed rate of return on its pension investments is so unrealistic that the city may have to spend even more than the $1 billion it has in reserve for its retirement plans, Mayor Michael Bloomberg said.
Officials are waiting for chief actuary Robert North to recommend how much the city can expect to reap on its pension assets, which were valued at $120 billion as of June 30. North hasn’t issued a recommendation in more than a year. A lower assumed rate would mean the city would have to contribute more to shore up its five pension plans.