NY Gov. Reveals Plan to Cut Public Worker Pensions

by Kyle Weidleman  |  June 13, 2011

Less than two years after public service workers agreed to pension changes to help balance the state budget and avert layoffs, Gov. Andrew Cuomo (D-NY) has called for a new tier of pension benefits. This "Tier VI" pension would require public employees hired on or after July 1 to work longer and pay more for less generous benefits.

Cuomo’s proposal comes less than two years after workers agreed to a "Tier V" pension plan in exchange for job security. The Tier VI proposal, on the other hand, was announced as the current administration continues its plan to lay off up to 9,800 public employees beginning on July 15.

Tier VI changes would affect all state workers, including teachers, firefighters, and police officers — as well as New York City employees who are covered under a city plan. All new state employees would see the minimum retirement age raised, their pension system contribution doubled, an end to early retirement options, and a lower salary base in the pension calculation.

If Cuomo’s plan were implemented, workers hired within a two- to three-year span would see three drastically different tiers of benefits, while doing the exact same jobs. "You can pay people high, you can pay people low — but don't pay them differently for the same work. There will be bitter resentment," said Assemblyman Jack McEneny (D), the former head of human resources for the city and county of Albany.

AFSCME affiliates in New York are working to ensure that this proposal dies during the final days of the session, and will continue to put grassroots pressure on Governor Cuomo to stop attacking public service workers’ hard earned pay and benefits.