FROM THE CSEA ACTION CENTER: THIS WEEK IN ALBANY

Governor Proposes Executive Budget

Governor Cuomo presented his proposed Executive Budget this week. While the Governor claims that this budget will create jobs, the truth is that this budget attempts to privatize government services and attacks our defined pension system. This budget will lead to the loss of thousands of good paying middle-class jobs and will harm the pension system for current and future workers.

Over the coming weeks and months, you will be needed to fight back against these proposals in order to protect our jobs and pensions.

We have outlined portions of the budget below. However, a more thorough, detailed summary available on the CSEA website.

Tier 6

Governor Cuomo proposes to slash pension benefits for future retirees through the creation of a new Tier 6 pension plan. The new tier would apply to employees hired after April 1, 2012. It would raise the retirement age from 62 to 65, increase employee contributions based on a person’s salary, increase vesting time from 10 to 12 years, exclude all overtime from a person’s final average salary, and base a pension on the final average salary for five years, rather than the current three. Further, it would also allow employees to enroll into a 401(k) retirement plan rather than a defined benefit pension. Cuomo’s plan for a 401(k) pension will weaken our pension fund and put your pension at risk.

For more information regarding this specific proposal, including flyers and talking points, please visit the CSEA website.

State Agency Mergers

The budget proposes to following mergers of state entities:

-The Division of the Lottery and the Racing and Wagering Board

-The Department of Civil Service and the Governor’s Office of Employee Relations

-Transfer the management of Belleayre Ski Center from the Department of Environmental Conservation to the Olympic Regional Development Authority.

It is unclear if further mergers may be in the works through the Spending and Government Efficiency Commission (SAGE). We will be monitoring this commission for further developments.

State Takeover of Medicaid Administration

The budget proposes that the Department of Health take over all Medicaid administrative responsibilities from local Social Service Districts by April 1, 2018. This could include making county employees become state employees. Further, the proposal would allow the Commissioner to privatize nearly all of the work currently performed by county social service employees

DiNapoli Warns Against ‘Dismantling Pensions’

Comptroller Tom DiNapoli fought back against the inclusion of a 401(k) pension proposal in Governor Cuomo’s budget during a speech to the National Public Pension Coalition in Washington D.C.

DiNapoli said, “The solution to dismantle current defined benefit plans long term is not a solution, in fact it could create more challenges and costs down the road,” He continued by saying, “401k’s were never intended to take the place of pensions. They were designed to be savings vehicles to supplement pensions and social security income. And overall, in their relatively short history, they have proven to be woefully inadequate for those who rely on them for their primary retirement income.”

Pensions help our local economies as well. The Comptroller stated that the pensions paid to New York retirees result in an estimated $6.5 billion in spending, $9.5 billion in economic activity, and $1.3 billion in property taxes paid. Further, the idea that taxpayers foot the bill for these pensions is wrong. The Comptroller states that 83 cents of every dollar in benefits paid to New York retirees come from investment returns, not employee employer contributions.

During this time of increasing attacks on defined benefit pensions, it is important to have a leader like Comptroller DiNapoli fight to protect our pensions.

The Week to Come

Wednesday, January 25th – CSEA will testify in front of the state legislature regarding Workforce Issues in the state budget.