Raising the equity cap from 60% to 70% for New York City's five public pension funds would save the city $134 million in fiscal year 1997 and $150 million in fiscal year 1998, said Robert Harding, director of state legislative affairs for New York City. Mr. Harding's estimate was contained in a memorandum supporting an amendment to increase the system's investment in equities. The bill passed the Legislature and is awaiting the signature of Gov. George Pataki.
``This legislation will allow implementation of an asset allocation which will support an 8.75% actuarial interest rate for the five pension systems,'' said Mr. Harding. ``Any additional investment gains will result in lower employer contributions to the pension funds.''