“We see some potential for broad use of the intercept mechanism given chronic underfunding among a substantial share of the state’s approximately 656 suburban and downstate public-safety pension plans,” the report states. “Should use of the intercept law become commonplace, it could cause significant credit pressures across a sector that has already struggled to effectively deal with rising pension costs.”
The 2011 law, which directs the state to seize income tax, sales tax and other money that should go to a municipality and redirect it to pensions.