Andrew Cuomo unveiled pension reform legislation today which he said would save the state $93 billion over the next 30 years.
The bill would create a new Tier VI for future public employees and would lift the retirement age from 62 to 65. Employees would also be asked to contribute more of their income to their pension.
“The numbers speak for themselves – the pension system as we know it is unsustainable,” Governor Cuomo said. “This bill institutes common-sense reforms to bring government benefits more in line with the private sector while still serving our employees and protecting our retirees.”
The bill is likely to be opposed by the unions and by their allies in the Assembly, but has received high praise from Mayor Bloomberg, since New York City often has to bear the brunt of paying for labor contracts made by the state.
“By making sensible pension reforms that won’t impact a single current employee or existing retiree, this legislation will create $30 billion in savings over the next 30 years for the city, which will ensure we can afford the services and workforce that city residents depend on, and provide a secure retirement for municipal employees long into the future,” Bloomberg said.