NYS and its retirees support each other
Fall is here. In upstate New York summer is ending and the leaves are turning the many colors of autumn. Fall is my favorite time of the year, the temperature is pleasant and the nights are cool. I love fall in New York and I also like being a retiree in New York, which is a great place to retire.
Retirees in New York enjoy tax benefits such as: the STAR exemption of real property taxes, a tax exemption on Social Security (13 states do not offer this exemption), a tax exemption for city, state and federal pensions (41 states tax public pensions), a $20,000 exemption from taxes for 401k, IRA, and any other pension including your deferred compensation (32 other states have no exclusion, or they exclude but count Social Security in that exclusion). Retirees who live in New York not only benefit from these favorable tax laws, we also contribute to the New York economy.
Retirees give back to our state and local economies when we spend our pension income in our local communities, stimulating and growing their economies. During 2015 state and local retirees were responsible for $11.7 billion in economic activity in New York State. The goods and services retirees use create opportunities for new businesses in New York, help grow existing companies and create jobs. Retirees are particularly important to merchants because our retirement income provides a stable foundation of customers for their businesses.
Retirees create jobs. Business sectors that cater to the needs of retired consumers are booming. In coming decades, industries such as health care, restaurants and entertainment are areas primed for growth. Retired public employees are an important part of their customer base.
Did you know that as of March 2016, there were 440,943 New York state and local government retirees and 78 percent of them chose to live in New York? Many retirees give back to their communities as volunteers and supporters of charitable causes, giving their time, their skills and money.
State and local retirees are widely distributed across the different regions of New York. They make up 1.7 percent of the general population, but in some areas of the state, they account for more than 5 percent of the residents.
In 2015, state and local retirees paid $1.7 billion in real property taxes. That’s 3.1 percent of the total real property taxes collected in New York. In some areas of the state this figure is even greater. In the North Country, retirees pay 6.8 percent, and in the Capital District, 8.7 percent of the property taxes collected. Additionally, retirees paid an estimated $600 million in state and local taxes in 2015. (Source: NYSLRS Comprehensive Annual Financial Report; U.S. Census Bureau; OCS analysis.)
Fall also brings with it another election, so please remember to vote November 7!
Turn your ballot over and vote no on proposition 1 that would authorize the state to hold a constitutional convention. That “NO” vote can help protect your pension and spare all New York taxpayers a large, needless expense.
Retiring or Retired? Join PEF Retirees now!
Membership equals benefits. Contact PEF Retirees at 800-342-4306, x289 or gro.f1508483310ep@se1508483310erite1508483310RFEP1508483310 DON’T DROP NYSHIP AT 65!