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Syracuse City Auditor Alexander Marion released a Rethinking Retirement report addressing the rising cost of pension and employee benefits for public service workers in the city of Syracuse on Tuesday afternoon.

Marion’s report found that the amount local taxpayers contributed to city workers’ pension costs has increased by around $8 million, or 36%, since the 2021 fiscal year. The percent increase was greater than that of the overall city budget — which grew by just 33%. The audit also projects that by 2030, these costs will grow by 58%.

“This report is written not to alarm but to inform: we are not in a crisis today, but increasing pension costs are putting increasing stress on local governments,” Marion wrote in the report.

State public service workers are assisted through the retirement process by the New York State and Local Retirement System, a defined benefit fund for public employees, retirees and their beneficiaries. With inflation and other economic concerns, high pensions take funds away from road repairs, water infrastructure improvements and police funding, the report states.

Established in 1921, the NYSLRS is the largest public retirement system in the country, with 1.2 million members benefiting from two funds — the state’s Employees’ Retirement and Police and Fire system.

Available to thousands of state and local government employees across New York, the program provides direct payouts to retired public employees. It also offers disability and death benefits, as well as loans for retirees and their families after death.

In the audit, Marion said he hopes to help Syracuse increase future benefits for people in public service professions while also helping local governments manage costs.

These public service professions — including police officers, firefighters and politicians — are not among the highest-paid workers in Syracuse, but are instrumental to the city, Marion wrote. Full-time employees who spend more than five years working in these professions are granted retirement benefits through NYSLRS.

Syracuse taxpayers’ employer pension contributions will exceed $35 million by FY25, and employee salaries and benefits will be more than $200 million, according to the report. The pension funds are projected to rise 41% by 2026 and 58% by 2030. While the benefits of NYSLRS will increase for members, the report said, it means fewer municipal funds will be available.

Marion said during a Tuesday morning press conference that he has shared his findings with city administrators and hopes to collaborate with them to improve pension costs, WRVO reported.

Published on December 4, 2024 at 12:19 am

Contact Chloe: cfrinka@syr.edu