HEVESI SAYS MUNICIPAL PENSION PAYMENTS TO DIP.(CAPITAL REGION)

Byline: MARC HUMBERT Associated Press

ALBANY -- New York's local governments, battered by rising pension payments, will see costs drop by 10 percent in 2006, state Comptroller Alan Hevesi said Wednesday.

Hevesi said a stronger stock market has helped sweeten the state's pension fund, allowing the state to reduce the percentage paid by local governments to 10.7 percent of payroll in February 2006, compared to 12 percent of payroll on Feb. 1, 2005. For police and fire employees, the contribution rate will be about 15 percent, down from the 16.3 percent due this coming February.

A Hevesi spokesman said the contribution rate for state government will …