CITY PENSION NIGHTMARE

NY City Pension Nightmare
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The city's five pension funds have lost close to 30 percent in the Wall Street crisis this year - threatening to hit taxpayers like an economic tsunami for years to come.

An estimated $30 billion in recent pension investment losses would have to be covered by the city's operating budget starting in 2010. Total assets (for the NYC-5) are down $30 billion from more than $100 billion a year ago.

By law, the city must make up the difference when the pension funds earn less than 8 percent a year. The city can spread the cost of plugging that gap over the following six years.