Albany, NY, Jun 09, 2011 — Governor Andrew Cuomo has introduced a new pension reform bill that would save money by offering diminished pension benefits to future state employees. Karen DeWitt reports from Albany.
Cuomo released a statement that the new pension tier will increase the retirement age for new employees from 62 to 65, increase employee pension contributions and end so-called pension padding where employees accumulate substantial amounts of overtime in their final years of service to increase their pension.
The governor said the present system is too costly and is “unsustainable” going forward. The state’s public worker unions condemned the proposal.
CSEA President Danny Donohue accused Cuomo of grandstanding for his "millionaire friends," and said the plan would "pick the pockets" of workers.
Unions just agreed to a new pension tier with fewer benefits two years ago. The Public Employees Federation is urging lawmakers to “reject” the measure.