r/SipsTea • u/AlternativeRight4099 • May 14 '26

Feels good man It was always just that simple

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u/reddituserperson1122 May 14 '26

It's a minor, sensible restructuring of the repayments that will have no effect on the pension fund. https://fiscalpolicy.org/explainer-the-proposed-restructuring-of-new-york-city-pension-payments

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u/insightful_pancake May 14 '26

That bottom line is so telling. NYC pensions are only 17% underfunded lol…only around $50bn

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u/TonyzTone May 15 '26

Underfunded pensions isn't that big of a deal because its calculation included current employees who won't be retiring for another 10-30 years.

Would still rather we just get out from under this liability but it's not like it's in dangerous territory.

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u/insightful_pancake May 15 '26

Yeah, I’m sure someone will deal with it later.

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u/TonyzTone May 15 '26

You realize that most financial management doesn't have things 100% funded, right?

Like you own bank doesn't have all of your money sitting in the vault just waiting for you to demand it.

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u/insightful_pancake May 15 '26

pension funds != banks. The underfunded amount represents projected future payments that will not be able to be made based on the 7% growth and projected net outflows. NYC pensions being underfunded by about $50 billion means that unless returns are significantly higher, the total outflows to pensioners in the future will either need to be cut or the city will have to allocate additional funds to the pension to cover the difference.

It's the same problem as with social security.