JSA2026 Commonwealth Budget: Volume XVIII

Pensions and Long-Term Liabilities

Jason S. Arnold for Governor of New York
Published: May 12, 2025
Contact: jaysarnold@icloud.com | (516) 586-0660 | https://jsa2026.com/

Introduction

Volume XVIII takes on one of the biggest silent threats to New York’s fiscal future: the ballooning cost of pensions, retiree benefits, and long-term obligations locked into outdated union contracts and legislative guarantees.

This volume doesn’t attack retirees—it defends the next generation from inheriting a broken system. We propose a fair balance between honoring commitments and overhauling structures before they implode.

Core Focus Areas

• Total FY2026 Liability Spending: $22.7 Billion
• Key Targets: pension fund sustainability, COLA adjustments, retirement eligibility, contract transparency, post-employment healthcare costs

1. Public Pension Fund Sustainability (TRS, ERS, Police & Fire)

Spending: $13.9 Billion

• Issue: Defined benefit plans locked in at unsustainable rates, market exposure risks, lack of new worker portability
• Recommendation: Shift all new hires to hybrid benefit models by 2027; introduce pension risk-sharing formulas tied to market performance

2. Post-Employment Healthcare Obligations

Spending: $4.6 Billion

• Issue: Lifetime healthcare coverage with minimal contribution burdens taxpayers while duplicating Medicare eligibility
• Recommendation: Transition retiree healthcare to a contribution-matching system; integrate with federal programs post-65

3. Cost of Living Adjustments (COLA) & Early Retirement Tiers

Spending: $2.8 Billion

• Issue: Annual COLAs applied across-the-board with no income scaling; early retirement abuse in high-comp sectors
• Recommendation: Scale COLA by income band. Require 5-year average salary cap for early retirement payout calculations.

4. Contract Transparency & Liability Forecasting

Spending: $1.4 Billion impact buffer

• Issue: State contracts negotiated with unions often lack full fiscal impact disclosure until after ratification
• Recommendation: Require 10-year liability forecast on all new contracts. Publish public union agreements in full before legislative vote.

Closing Statement

New York’s pension promises must be kept—but not at the expense of collapse. Volume XVIII honors our commitments by reforming them now, not reacting later.

We can secure retirements without bankrupting our kids. All it takes is truth, math, and the courage to act.

Jason S. Arnold
Candidate for Governor, New York
https://jsa2026.com/
(516) 586-0660 | jaysarnold@icloud.com
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