January 8, 2013 – When Mayor Michael Bloomberg unveils his 2014 financial plan later this month, he will probably spotlight one piece of very good news. Pension costs are no longer eating up an increasingly large part of the budget. This is an example of how fighting tough battles in Albany can pay off. By raising the retirement age and other modest changes to public sector pensions for city and state workers, pension costs will grow less than the city’s revenues over the next few years. The Independent Budget Office projects that pension costs will increase just 1.9% in the next fiscal year to $8.1 billion and decline to $8 billion in 2015.