TIER V - NOT THE RIGHT WAY TO GO

New York State is facing difficult economic times and several issues are currently under review by the New York State Legislature to help resolve our current budget crisis. One of these proposals is the creation of a new Tier V in the pension system for both uniformed and non-uniformed public employees.

The New York State AFL-CIO strongly opposes this budget proposal to create a new pension tier for future employees (Tier V).

This proposal is unacceptable to the 2 1/2 million members of the New York State AFL-CIO, particularly those who provide essential public services.

Certainly, these difficult economic times dictate that all New Yorkers share in the sacrifice it will take to reinvigorate our state and national economies. As such, it is our strong belief that public employees should not be asked to bear a disproportionate burden through massive budget cuts, layoffs and in particular, benefit reductions, all of which have damaging long-term economic and workforce implications.

Some in Albany have stated that public employee pensions are too rich. The numbers clearly show otherwise:

In 2008, the average NYSLERS pension benefit was $16,909 96.8% of all non-uniformed New York State employees are in a pension tier whose normal retirement age is 62 (Tier 2, 3, and 4).
Employer costs for pensions in NYSLERS have gone down as a percentage of payroll for the past 4 years and are expected to drop again next year to 7.6% of payroll.
New York State’s annual budget appropriation for pension contributions in 2009-10 is expected to be $100 million less than the prior year (a 10.7% reduction).
New York State’s 2010 required contribution to the pension system as a percentage of payroll is less than it was in 1972.
During the years 1991 through 1995, New York State contributions to the pension fund were less than 1% of payroll and during the years 1998 through 2003 contributions were less than 2% of payroll-less than most private employers contribute to pension plans.
(Source: Office of the NYS Comptroller)

In summation, if enacted this new retirement plan will require greater contributions from certain middle class families, over a longer period of time. It will also lengthen the time it takes to become eligible for retirement, while providing inferior retirement benefits.

As a result of all these changes, taxpayers will not save one single dime over the near term, and will likely only provide marginal savings over the long term.

As such, the real question is: Why is this proposal being put forth as a means of addressing this very real and historic budget crisis, when it will in no way, shape or form effectively reduce our state budget deficit?

Denis M. Hughes

PLEASE NOTE:
NO LABOR LOBBYISTS MEETING
MONDAY MARCH 23, 2009

(Next Meeting March 30, 2009)

Issue of the Week

New York’s Loss is Nation’s Gain

On behalf of everyone at the NYS AFL-CIO we extend our support and congratulations to New York State Labor Commissioner Patricia Smith, who was nominated by President Obama for Solicitor of Labor at the United States Department of Labor. All of us know and appreciate the hard work, dedication and efforts that the Commissioner has put into turning the Department of Labor back into what it is supposed to be: an agency to help New York’s working families through difficult times. Whether it has been addressing the current unemployment crisis, enforcement of prevailing wage laws, or tackling the lingering issue of the misclassified workers, Commissioner Smith has been there for working families. More importantly, she has spoken out and acted when she and her staff have found injustices.

While we do not yet know her departure date, we will be keeping a close eye and doing our best to send her off to Washington the right way. As we monitor the nomination process, the New York State AFL-CIO would like to offer all of our support and best wishes to Commissioner Smith, as well as our heartfelt thanks for her work on behalf of all New Yorkers.

Keep An Eye On

Monday, March 23, 2009
Denis Hughes to address the Senate Labor Committee, 11:30 a.m. Room 309 LOB

Wednesday, March 25, 2009
New York State AFL-CIO Nurses Issues Committee Meeting, 1:00 p.m., State Fed Headquarters, Albany.

For further information contact Legislative Department at:518-436-8516 or edonnelly@nysaflcio.org


Denis Hughes, President	Ed Donnelly, Director
March 23, 2009	Issue Nine