New York State Shutdown And Pensions

[x635 4,066]

If NYS government does shut down, what happens to those who recieve work related pensions and medical care reimbursment from the state?

[mfc2257 464]

If NYS government does shut down, what happens to those who recieve work related pensions and medical care reimbursment from the state?

Are you asking, how will they be paid is no one is there to pay them? If that is the case, many of those functions happen via a combination of 3rd party record keeping and actuarial services. For example, the dumbed down version of it is, the state through competitive bid like everything else hires a custodian, record keeper, and actuary. Through these services, the payments are calculated based on tables, the record keeper processes the payment, and the custodian distributes it on behalf of the state. So if the government shuts down for a short period of time, theoretically those assets paid as part of periodic payments, because they are held in a trust account and separate from other state dollars, should continue to flow.

[jack10562 414]

Pensions would be unaffected since the funding for that is not under the control of the governor or legislature in the budget process.

If the State government DID shut down, state workers, vendors and contractors would not be paid.

Medical reimbursements will continue to be funded since that bill was approved last week.

[helicopper 1,050]

Interestingly enough, they say that unemployment benefits would not be paid during a state shutdown.

I have no idea why that would be but that's what they've been saying.