New York Assembly Passes $557 Million Teacher Pension Reform, Lowering Tier 6 Retirement Age to 58
Updated
Updated · New York Daily News · May 26
New York Assembly Passes $557 Million Teacher Pension Reform, Lowering Tier 6 Retirement Age to 58
3 articles · Updated · New York Daily News · May 26
The State Assembly approved a budget bill that lets Tier 6 teachers and teaching assistants retire at 58 after 30 years, and sent it to the State Senate.
The $557 million plan rolls back part of Andrew Cuomo-era pension cuts, which had pushed full-retirement age for post-2012 public workers from 55 to 62 while raising contributions and trimming benefits.
Other government workers would not get the lower retirement age, but most would see pension contribution rates reduced to 3% to 5.75%, and the overtime cap used in final salary calculations would rise to about $30,000 from $22,000.
Gov. Kathy Hochul cast the changes as a recruitment tool for shortages in teaching, health care and corrections, while the Citizens Budget Commission warned the package could push statewide annual costs near $1 billion when added to earlier reforms.
New York City is expected to bear $123.3 million of the first-year cost, as lawmakers race to finish a state budget that is nearly two months late.
Can New York afford its new pension promises without forcing crippling tax hikes or service cuts on local communities?
Are pension reforms the cure for the public workforce crisis, or just an expensive, short-term fix?
Does raising overtime caps to fix one problem create a bigger 'pension spiking' crisis down the road?