Hochul Finalizes $557 Million Tier 6 Pension Deal, Cutting Teacher Retirement Age to 58
Updated
Updated · The Chief-Leader · May 22
Hochul Finalizes $557 Million Tier 6 Pension Deal, Cutting Teacher Retirement Age to 58
3 articles · Updated · The Chief-Leader · May 22
$557 million in annual Tier 6 pension changes were finalized for New York's FY2027 budget after weeks of talks among Hochul, labor officials and political leaders.
The deal lowers the retirement age to 58 for teachers with 30 years of service and trims employee contributions to 3%-5.75%, but keeps retirement at 63 for other workers.
It is markedly narrower than labor's roughly $1.5 billion push, which sought retirement at 55 and broader contribution cuts for all Tier 6 workers.
$118 million of the yearly cost will fall on the state, while $440 million will be borne by local governments and school districts; overtime counted toward pensions also rises for police, firefighters and other employees.
Amid a weak job market, can New York afford a $557 million annual pension enhancement?
How will local governments pay a new $440 million pension bill without raising taxes or cutting services?