Albany, N.Y.-- Governor Cuomo Pushes for Pension Reform
Showing no appreciation for the sacrifices already made by working families, the Governor continues to push for a Tier VI pension plan. In a recent interview, Governor Cuomo said, “The cost of pensions is going to have to be reformed going forward.”
Governor Cuomo’s proposed Tier VI would raise the retirement age to 65, double employee contributions, require employees to contribute forever and increase the vesting time from 10 to 12 years. It would significantly decrease retirement security for future workers. Governor Cuomo’s push for pension reform comes after the enactment of the Tier V pension plan that was implemented in 2010 and is expected to save the state $35 billion over a 30 year period.
While the media misrepresents our pensions, here are some simple truths to consider:
• The average CSEA member pension is about $14,000;
• The New York State Employee Retirement System is the best funded system in the country;
• Comptroller Thomas DiNapoli stated that the value of the Fund is $146.5 billion, the highest since the global economic downturn in fiscal year 2008-2009.
• The increased pension contributions from public employers are necessitated by the Wall Street crash and a decade of public employers not contributing to the system while employees contributed 3 percent of salary;
• Cuomo’s Tier VI reforms will put unnecessary, unfair and undue burden on the lowest-paid employees in public employment.