School Districts Look to Pay 37 Percent Increase in Pension Costs

School districts and taxpayers statewide will have to dig deeper next year to fund a 37 percent increase in the pension contribution rate for teachers and other workers.

While school districts now allocate 11.8 percent of their payrolls for retirement costs, taxpayers will have to contribute 16.25 percent next year, the New York State Teachers' Retirement System told school districts earlier this month.

Much of the increase was driven by the same challenges facing other public retirement systems — waves of baby boomers retiring, combined with low investment returns since the 2008 financial crash.