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Unions Freak Out When Cuomo Says Pensions Must Be Scaled Back
By
Jen Chung
Published May 17, 2011
Modified May 17, 2011
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Governor Cuomo's office
By
Jen Chung
Published May 17, 2011
Modified May 17, 2011
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Yesterday, Governor Andrew Cuomo said he would introduce pensions reforms to save the state $93 billion over the next 30 years, "The cost of public pensions is going through the roof... We have to reduce pension costs or we'll never stop taxes from going up.” (NY1 reports, "In 1999, public worker pensions cost the state $1.3 billion. In 2014, the price tag will reach $6 billion.") Naturally, unions were not happy.
Civil Service Employees Association president Danny Donohue said, "It is very clear ... that the governor does not care about the impact of his policies on working people. The governor is engaging in political grandstanding to impress his millionaire friends at the expense of working people and the services they provide to the people of New York." According to the Times Union, Cuomo's plan would include:
- Double the employee contribution to 6 percent for new hires.
- Raise the minimum age of retirement to 65. Retirement age is now 62 for most employees and 57 for teachers. Early retirement, now allowed at age 55 with a 38 percent penalty, would end.
- Require workers to put in 12 years before they qualify for a pension. Employees are now "vested" after 10 years.
- End the practice of "padding" a pension by factoring in overtime pay late in service, unused vacation and certain types of sick leave.
- Cap pensions for the highest-paid state employees -- physicians at state teaching hospitals, CEOs of public authorities and utilities among them -- based on the governor's $179,000 salary. Many of those employees earn far more.
- Eliminate a "multiplier" that boosts a pension after 20 years and 25 years of service.
Cuomo's spokesman said that talks with unions are ongoing.
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Jen Chung
Jen Chung is a former WNYC and Gothamist editor.
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