While pension reform is a national issue, New York needs it more as we have the second highest pension burden in the nation. New Yorkers pay $650 a year in taxes for public employee pensions, more than twice the national average...
|Governor Cuomo greets reporters. B. Campbell Photo.|
From 2002 to 2011, the total pension bill for New York State rose $1.7 billion to $12.5 billion--a whopping 630% increase! As part of his proposed budget package, Governor Cuomo is seeking to save over $100 billion over 30 years by adding “Tier VI” to the NYS pension system. This would be accomplished by offering newly hired public employees (Tier VI) two pension fund options:
(1) a reduced “defined benefit” program—similar to the current plan, but
modified to eliminate such things as counting overtime in pension calculations; or (2) a new “defined contribution” plan, which is similar to a 401-K, through which employees would contribute to their individual retirement accounts in amounts that are based on their salaries, and could invest those funds themselves.
“The Tier VI plan will bring huge future savings to business owners and taxpayers, and provide fiscal stability for our state and local governments,” says Amy Allen, Managing Director-Advocacy and International Business at WCA.
The Westchester County Association supports pension reform because the current system overburdens state government and suffocates local governments, which must operate within the recently passed 2% property tax cap. The Tier VI pension plan is the first step in the mandate relief battle. We
strongly urge its passage.