Friday, October 21, 2011
NEW YORK CITY PENSIONS PROVIDE RETIREMENT INCOME AT LESS THAN FORTY PERCENT OF THE COST OF INDIVIDUAL ACCOUNTS
Built-In Economic Efficiencies Enable NYC Pensions to Do More with Less Dollars
OCTOBER 20, 2011, Washington, D.C. — A report issued today finds that New York City’s defined benefit Pension Plans can deliver the same retirement income at nearly 40% lower cost than a defined contribution 401(k)-type individual account. The report, A Better Bang for New York City’s Buck, finds that defined benefit savings come from three sources:
- Superior investment returns. The pooled nature of assets in a defined benefit plan result in higher investment returns, partly based on the lower fees that stem from economies of scale, but also because the assets are professionally—not individually—managed. The City plans’ enhanced investment returns save from 21 percent to 22 percent, according to the report.
- Better management of longevity risk. Because pensions pool the longevity risks of a large number of individuals and can determine and plan for mortality on an actuarial basis, New York City’s defined benefit plans save between 10 percent and 13 percent compared to a typical defined contribution plan.
- Portfolio diversification. Unlike defined contribution plans, pension assets can be invested for optimal returns. Individuals using 401(k)s, by comparison, are advised to rebalance their investments, downshifting into less risky and lower-returning assets as they age. This ability to maintain portfolio diversity in the City’s defined benefit plans saves from 4 percent to 5 percent.
The study was conducted by the National Institute on Retirement Security and Pension Trustee Advisors on behalf of the Office of New York City Comptroller John C. Liu. It is based on a similar national report conducted by NIRS, and uses current data from the five New York City retirement systems. The study found that costs associated with traditional pensions range from 36 percent to 38 percent less than 401(k)-type individual accounts.
“These findings are consistent with our national study on the cost efficiencies embedded in pension plans,” said Diane Oakley, NIRS executive director. “The analysis clearly indicates that the qualities inherent in DB plans – particularly the superior investment returns and pooling of risks and assets – fuel their fiscal efficiency. The report provides important insight for policymakers, employers and employees, who are struggling to ensure adequate retirement income with the fewest dollars possible,” Oakley added.
“Our model makes an ‘apples to apples’ calculation of the actual dollar contributions required for a DB and DC plan to achieve the same target retirement benefit,” said William Fornia, report author and president of Pension Trustee Advisors. “The efficiencies of DB plans already are well documented. This report quantifies the magnitude of those efficiencies in New York City.”
“Calls to replace pension plans with 401k plans understandably increase when markets have returned poorly over sustained periods,” said Comptroller John C. Liu. “However, as this and other studies show, the defined pension is the most cost efficient vehicle to deliver retirement income security.”
Pension Trustee Advisors conducted the analysis under the direction of founder and president, William B. Fornia, an actuary with 30 years of experience. Fornia also co-authored the earlier national research for NIRS. The model for the research was based on a group of 1,000 newly-hired employees, from each of the five New York City pension plans, including teachers, civil service workers, sanitation workers, police, and fire personnel.
About the National Institute on Retirement Security
The National Institute on Retirement Security, based in Washington, D.C., is a not-for-profit organization established to contribute to informed policymaking by fostering a deep understanding of the value of retirement security to employees, employers, and the economy through national research and education programs. NIRS seeks to encourage the development of public policies that enhance retirement security in America.
About Pension Trustee Advisors
Pension Trustee Advisors provide expertise, education, and customized solutions to trustees, pension fund staff, government entities, attorneys, labor and other pension decision makers. It was founded by William Fornia, a retirement consultant and actuary with more than 30 years of industry experience. Prior to forming PTA, Fornia held senior positions with leading actuarial firms, and also served as corporate actuary for The Boeing Company. More information is available at www. pensiontrusteeadvisors.com.
About the New York City Pension Funds
The New York City Pension Funds include: the New York City Employees’ Retirement System, the Teachers’ Retirement System, the New York City Police Pension Fund, the New York City Fire Department Pension Fund, and the Board of Education Retirement System. This report marks the fourth in a series produced by Comptroller Liu’s Retirement Security NYC initiative. Previous reports: Municipal Employee Compensation in New York City, The $8 Billion Question, and Sustainable or Not? NYC Pension Cost Projections through 2060, are available at http://www.comptroller.nyc.gov/rsnyc/
“Calls to replace pension plans with 401k plans understandably increase when markets have returned poorly over sustained periods,” said Comptroller John C. Liu. “However, as this and other studies show, the defined pension is the most cost efficient vehicle to deliver retirement income security.”
Pension Trustee Advisors conducted the analysis under the direction of founder and president, William B. Fornia, an actuary with 30 years of experience. Fornia also co-authored the earlier national research for NIRS. The model for the research was based on a group of 1,000 newly-hired employees, from each of the five New York City pension plans, including teachers, civil service workers, sanitation workers, police, and fire personnel.
About the National Institute on Retirement Security
The National Institute on Retirement Security, based in Washington, D.C., is a not-for-profit organization established to contribute to informed policymaking by fostering a deep understanding of the value of retirement security to employees, employers, and the economy through national research and education programs. NIRS seeks to encourage the development of public policies that enhance retirement security in America.
About Pension Trustee Advisors
Pension Trustee Advisors provide expertise, education, and customized solutions to trustees, pension fund staff, government entities, attorneys, labor and other pension decision makers. It was founded by William Fornia, a retirement consultant and actuary with more than 30 years of industry experience. Prior to forming PTA, Fornia held senior positions with leading actuarial firms, and also served as corporate actuary for The Boeing Company. More information is available at www. pensiontrusteeadvisors.com.
About the New York City Pension Funds
The New York City Pension Funds include: the New York City Employees’ Retirement System, the Teachers’ Retirement System, the New York City Police Pension Fund, the New York City Fire Department Pension Fund, and the Board of Education Retirement System. This report marks the fourth in a series produced by Comptroller Liu’s Retirement Security NYC initiative. Previous reports: Municipal Employee Compensation in New York City, The $8 Billion Question, and Sustainable or Not? NYC Pension Cost Projections through 2060, are available at http://www.comptroller.nyc.gov/rsnyc/
STUBBORN DISPARITIES IN NYC UNEMPLOYMENT PERSIST, WITH YOUNG PEOPLE TWICE AS LIKELY TO BE OUT OF WORK
Unemployment rates for African Americans, young people, and workers without college degrees remain stubbornly high in New York City even as the overall rate ticks downward year-on-year – highlighting entrenched disparities, according to a data analysis released today by New York City Comptroller John C. Liu. What’s more, the unemployment rate in the Bronx was nearly three times as high as in Manhattan.
“Jobs are vital to everyone regardless of race, age, or zip code. Persistent inequities in unemployment threaten the economic health of the City as a whole,” Comptroller Liu said. “It’s important that the City economy works for everyone, so the crisis like the one we’ve seen doesn’t happen again. Growth that is unequal, jobs that don’t pay, and gaps in educational achievement and infrastructure investment will only create an unequal playing field and, worse, conditions for another downturn.”
With the release of New York City unemployment data Thursday, the Comptroller’s Bureau of Fiscal and Budget Studies analyzed raw data in the Current Population Survey (CPS) conducted by the Census Bureau and highlighted several trends among unemployed New Yorkers for the third quarter of this year.
The breakdown was designed to help provide policymakers with a snapshot of areas of persistent unemployment. Even as the City’s overall unemployment rate declined year-on-year – to 8.7 percent in the third quarter of 2011 from 9.5 percent in the same quarter of 2010, and 10.7 percent in 2009 – stubborn disparities are evident.
Age
As the Occupy Wall Street protests highlighted joblessness among young people in particular, data showed unemployment for those under 25 years old stood at 16.9 percent, more than double that of 25 to 54 year olds (8.3 percent).
| | 3Q09 | 3Q10 | 3Q11 |
| 16-24 years old | 29.6% | 17.7% | 16.9% |
| 25-54 years old | 9.1% | 8.7% | 8.3% |
| 55 years and older | 5.5% | 6.7% | 5.7% |
| Source: NYC Comptroller’s Office from CPS microdata | |||
Race
The unemployment rate for African Americans remained in the double-digits, at 14.2 percent, compared with 6.6 percent for whites, 7.8 percent for Hispanics, and 7.2 percent for Asians and others.
| | 3Q09 | 3Q10 | 3Q11 |
| African American | 16.4% | 15.3% | 14.2% |
| White | 7.7% | 5.2% | 6.6% |
| Hispanic | 12.5% | 13.3% | 7.8% |
| Asian and other | 6.5% | 4.4% | 7.2% |
| Source: NYC Comptroller’s Office from CPS microdata | |||
Borough
By borough, the unemployment rate in Manhattan has fallen to 4.7 percent, while in the Bronx it is nearly three times as high at 13.6 percent.
| | 3Q09 | 3Q10 | 3Q11 |
| Bronx | 17.8% | 17.4% | 13.6% |
| Brooklyn | 8.9% | 9.1% | 11.2% |
| Manhattan | 8.5% | 7.1% | 4.7% |
| Queens | 11.8% | 8.3% | 7.2% |
| Staten Island | 4.6% | 8.6% | 7.1% |
| Source: NYC Comptroller’s Office from CPS microdata | |||
Education
Disparities by education level were striking as well – 13.0 percent unemployment for those without a high school diploma and 10.5 percent for high school graduates, compared with 5.4 percent for college graduates.
| | 3Q09 | 3Q10 | 3Q11 |
| No HS diploma | 15.0% | 16.1% | 13.0% |
| HS, some college | 12.4% | 11.3% | 10.5% |
| BA or more | 7.0% | 5.1% | 5.4% |
| Source: NYC Comptroller’s Office from CPS microdata | |||
Due to the sample sizes of the CPS data, this information is broken down on a quarterly basis to establish the most accurate depiction of the unemployment trends facing New Yorkers.
The Current Population Survey is a monthly survey of about 50,000 households conducted by the Bureau of the Census for the Bureau of Labor Statistics. The survey has been conducted for more than 50 years. CPS data are used by government policymakers and legislators as important indicators of our nation’s economic situation and for planning and evaluating many government programs. They are also used by the press, students, academics, and the general public.
KOPPELL CALLS FOR 100% WHEELCHAIR ACCESSIBLE TAXI FLEET
“London has had a wholly accessible taxi fleet for more than 15 years. New York can do no less for our wheelchair bound citizens,” Koppell concluded.
On Wednesday, October 19, 2011, Council Member Oliver Koppell, Chair of the Committee on Mental Health, Mental Retardation, Alcoholism, Drug Abuse and Disability Services, joined with numerous colleagues and advocates for people with disabilities to call for a taxi fleet in New York City that is 100% wheelchair accessible.
According to the Daily News editorial on October 16, 2011, “of the 13,237 yellow cabs in New York City, only 231 can accommodate a wheelchair. That‘s 1.7%, making the chance of hailing one almost impossible.”
“This is wholly unacceptable,” Koppell said. “Also unacceptable is the fact that the Mayor and the Taxi and Limousine Commission have chosen an inaccessible Nissan model to be the so-called “Taxi of Tomorrow” that will be the exclusive design for New York City taxicabs for at least the next decade.”
In a recent filing, the Justice Department has strongly concluded that the Mayor’s decision to choose one inaccessible van model for the “Taxi of Tomorrow” and reliance on an ill-conceived dispatch plan violates the American with Disabilities Act.
Koppell has introduced a bill, with 36 co-sponsors, that would require all new taxicabs to be accessible, in compliance with the ADA requirement for equality of access. It’s time for the Council to move this legislation forward,” Koppell said “because we cannot rely on the Mayor to respect the civil rights of people with disabilities. His comments on his radio program clearly indicate that he does not understand the reality that wheelchair using New Yorkers face.”
There is a growing consensus among New Yorkers that it is time to create a taxi fleet that can accommodate wheelchairs, which is reflected in the statements of former TLC Chairs Diane McGrath-McKechnie and Christopher Lynn who wrote to the Mayor saying, “It’s time to reverse the shameful lack of progress and make all taxi and car services wheelchair accessible.”
Wednesday, October 19, 2011
SENATOR GUSTAVO RIVERA CONTINUES TEACHING FREE COMMUNITY CIVICS CLASSES
This class is focused on issues of Civil Rights and Civil Liberties
State Senator Gustavo Rivera is holding his second in a series of four community civics classes Thursday, October 20 at 6:00PM at the Bronx Library Center. This week's class is focused on Civil Rights and Civil Liberties. Last Thursday, Senator Rivera launched community civics classes that will continue every Thursday until November 3rd with a graduation ceremony to celebrate the completion of the course.
WHO: State Senator Gustavo Rivera
WHEN: October 20, 2011 at 6:00PM
WHERE: Bronx Library Center - 310 E Kingsbridge Rd.
This course is FREE TO THE PUBLIC and we encourage Bronxites of all ages to attend. Senator Rivera’s office is encouraging Bronxites to attend all four classes, but it is not necessary in order to participate.
BOROUGH PRESIDENT DIAZ & DISTRICT ATTORNEY JOHNSON ANNOUNCE MAJOR GRANT FOR DOMESTIC VIOLENCE PREVENTION
Today, Bronx Borough President Ruben Diaz Jr. and Bronx District Attorney Robert T. Johnson, along with representatives of the New York City Department of Probation and Safe Horizon, announced new and enhanced domestic violence services in the Bronx with a new grant from the United States Department of Justice Office on Violence Against Women.
The Bronx Borough President’s Office has partnered and sub-contracted with the Bronx DA’s Office, NYC DOP, NYPD, and Safe Horizon to receive the “Grant to Encourage Arrest Policies and Enforcement of Protection Orders Program” from the US Department of Justice, Office on Violence Against Women.
This funding has arrived in conjunction with New York State Office for the Prevention of Domestic Violence’s “Shine the Light on Domestic Violence” campaign, which takes place every October during Domestic Violence Awareness Month. The grant is for $999,092.
“With the influx of federal dollars, the Bronx will be able to replace domestic violence officers in the precincts with the highest reported incidents of domestic violence, publish readily available information for officers to properly handle domestic incident reports and continue to organize public awareness events and campaigns. With our city's budget shrinking, I am proud to be able to attract funding to supplement the cuts in services for victims of domestic violence,” said Bronx Borough President Ruben Diaz Jr.
“The funds provided by the US Department of Justice, Office on Violence Against Women will enable us to provide a coordinated, community response to victims of domestic violence in Bronx County from the earliest point in the case through sentencing. The project will help victims manage their risk by providing client-centered and comprehensive services from the time of the first incident reported to the police. Offenders will be held accountable for their actions through the enforcement of the mandatory arrest policy and referrals in appropriate cases, to the ‘Bronx Probation Misdemeanor Domestic Violence Program’ for enhanced supervision. Additionally, communication among the proposed project’s partners, the Bronx District Attorney’s Office, the NYC Department of Probation, the NYPD, and Safe Horizon will enhance case investigation, prosecution and sentencing,” said Bronx District Attorney Robert T. Johnson.
This grant is not the first effort of the Office of the Bronx Borough President to spread awareness about domestic violence. On September 26, the Office participated in the 11th Annual Gladys Ricart and Victims of Domestic Violence Memorial Walk, or “Brides’ March.” The March to spread knowledge of the horrors of domestic violence takes place every year in memory of Gladys Ricart, a Dominican woman from Washington Heights who was murdered on September 26, 1999, by an abusive ex-boyfriend on her wedding day.
More recently, the Bronx Borough President’s Office worked with Pregones Theatre and News 12 The Bronx to premier a play dedicated to the LGTBQ youth who experience violence from their parents and peers as they strive to be accepted. The office has also taped its ninth annual “Bronx DiVA Talk,” which includes information on the “fair access” bill of 2009 which broadened the definition of “family” and thereby expanded the class eligible for temporary orders of protection in family court.
This year’s million dollar grant will mark the Office of the Bronx Borough President’s fourth effort this year to end domestic violence in the region. Since 2002, the Office of the Bronx Borough President and its partners have received a total of nearly $4 million in funding for enhancing the services to victims of domestic violence. Overall, the funding and the programs it provides for will help domestic violence victims manage their risk, and will help to continue to hold offenders accountable for their actions.
The funding will also allow the continuation of the Bronx Domestic Violence Advisory Council, and will go towards planning more events in order to promote community response to domestic violence. With this grant, the Bronx Borough President’s Office and its partners will “Shine the Light on Domestic Violence” in the Bronx, providing a brighter future free from domestic violence.
Tuesday, October 18, 2011
LOCAL MERCHANT GIVES BACK WITH FREE FUNDRAISING WORKSHOP AND PRODUCT EXPO
Crown Trophy of the Bronx will hold their free Bi-annual Crown Trophy Fundraising Workshop and Product Expo this Wednesday, October 19, 2011, from 6pm-9pm at Villa Barone Ristorante in the Pelham Bay section of the Bronx.
Business owners, church groups, non-profit organizations, schools and sports teams and leagues can expect an enthusiastic and informative workshop facilitated by Greg Perry, owner of Crown Trophy of the Bronx since 1985 and current President of the Association of Merchants & Business Professionals of Westchester Square.
Join us as Mr. Perry shares his vast knowledge with attendees of various industries and reveals ideas, derived in part from focus groups, for future booster programs and fundraising campaigns that are mutually beneficial to multiple participants.
Greg Perry says, "At Crown Trophy of the Bronx, we realize that your purchase is more than just a cold exchange of funds and products. We value relationships that have come from doing business together and take the time to listen to and understand your needs."
Attend the Bi-Annual Crown Trophy Fundraising Workshop & Product Expo to learn ways in which you can maximize your fundraising efforts and see the wide variety of merchandising items available to you.
Hors d'oeuvres and refreshments will be provided.
To RSVP call 718.676.1626 or e-mail info@masmarketingny.com. For additional information call Crown Trophy at 718.824.4877.
Event: Bi-Annual Crown Trophy Fundraising Workshop & Product Expo
Date: Wednesday, October 19, 2011
Time: 6pm – 9pm
Location: Villa Barone Ristorante
Address: 3289 Westchester Avenue
Contact: Janett Florindo, 917.583.2075
Monday, October 17, 2011
SENATOR GUSTAVO RIVERA LAUNCHES FREE COMMUNITY CIVICS CLASSES
This class was the first in a series of four classes
State Senator Gustavo Rivera (Bronx) last Thursday launched a series of community civic classes he will be teaching at the Bronx Library Center.
Senator Rivera’s civics course will start on October 13th and will continue every Thursday until November 3rd with a graduation ceremony to celebrate the completion of the course. The course will focus on learning about the Constitution and the Bill of Rights, the different levels of government, as well as how government and elections work.
“Drawing on my experience as a Professor of Political Science, I am excited to be teaching a community civics class in the 33rd Senate District to members of the community who want to learn more about government and civic participation,” said Senator Rivera. “Government is suppose to work for the people. I believe strongly that the more knowledgeable one is about how government works, the more able one is to advocate and demand more from your government and elected officials. I hope this course will help to empower the residents of the Bronx to get more involved in advocating for issues and policies they care about and that what they learn will be instrumental in them demanding more of their government.”
Join Senator Rivera for the following community civics classes -
- October 20 - Civil Rights and Civil Liberties
- October 27 - State and Local Government
- November 3 - Voting and Elections
This course is FREE TO THE PUBLIC and we encourage Bronxites of all ages to attend. Senator Rivera’s office is encouraging Bronxites to attend all four classes, but it is not necessary in order to participate.