Report: NY Governor’s Plan Cuts Retirement Security 40 Percent

by Cynthia McCabe  |  March 13, 2012

A new report confirms that New York Gov. Andrew Cuomo’s plan to change the state’s retirement system will target workers with a nearly 40 percent cut in retirement benefits, risking the longterm financial security of all workers.

The report from the Fiscal Policy Institute points to benefit cuts that will result from the additional years employees must work to get a pension under the governor’s plan. It also shows a negative impact on workers’ retirement security resulting from changes the governor wants to make to current pension calculations. The Fiscal Policy Institute is an independent, nonpartisan, nonprofit research and education organization focusing on economic and social conditions in New York.

The Tier VI proposal pushes new employees toward riskier 401(k) style retirement plans that offer no guarantee of returns at the time of retirement. It is being called “unacceptable” by the New York State Comptroller and other advocates of working families.

Nearly 2,000 New York public service workers gathered last week in Albany for AFSCME’s annual lobby day, determined to stop the governor’s plan to target pensions and retirement security.