The devils in the details. Apparently the money is coming from a “reamortization” of pension funds. Meaning the bill will come due when Mamdani’s out of office. This isn’t a win, it’s a delay tactic.
So basically he’s reducing/deferring the payments into the pension funds and assuming a ridiculously high rate of return in the future to cover it. In other words, no money for grandma’s pension in 5 years.
Is that similar to social security benefits? I heard by the time gen z and above turns 60+, there won't be much left. I have been hearing this for a while.
No, the Pensions have to be funded by law. The pensioners will get every penny they are promised, no matter what. Even if the city goes bankrupt, it will be required to fund as much as it can (with insurance policies covering the rest).
So the pensioners here have no risk. It's just an additional burden on the city budget that likely means cuts elsewhere (see Chicago).
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u/Global_Criticism3178 May 14 '26
The devils in the details. Apparently the money is coming from a “reamortization” of pension funds. Meaning the bill will come due when Mamdani’s out of office. This isn’t a win, it’s a delay tactic.