NY Pension Fund Cuts Outlook, Hikes Contributions

September 3, 2010  |  

(Bloomberg) — New York’s $124.8 billion pension fund, the nation’s third-largest, reduced the assumed rate of return on its investments to 7.5% from 8% as it recovers from market losses, Comptroller Thomas DiNapoli said.

Mr. DiNapoli, the sole trustee of the pension fund, said state and local government employers’ payments to the fund will increase to about 16.3% of payroll in February 2012, from 11.9% due in February 2011. The fund covers 1 million current and retired government workers.

“The markets have become much more challenging over the past decade, which justifies a sensible reduction in the assumed investment rate of return,” Mr. DiNapoli said in prepared remarks for a press conference today in Albany, the state capital.

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