New York State Common Retirement Fund, Albany, may undergo changes that could save state and local governments $1.6 billion this year and guarantee stable funding in the future, Comptroller Alan G. Hevesi said. State legislators on Friday approved Mr. Hevesi’s proposed changes, which include: instituting a minimum annual employer contribution of 4.5% of payroll; changing the billing cycle to align it with local governments’ budget cycles; requiring the state to make payments in the current fiscal year; and allowing governments to cover pension contributions in excess of 7% of estimated payroll by selling five-year bonds or amortizing payments over five years.
The changes now await Gov. George E. Pataki’s approval.