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Cuomo told a receptive audience of mayors from around the state that New York’s current pension system is unsustainable and must be changed for future hires.
“If we do not do this, we could literally bankrupt the state of New york,” Cuomo said.
The governor, in his budget proposal, wants a new benefit tier that offers a reduced public pension or a 401k style plan, but, he says, he’s flexible like “gumby” on that.
“I’m not saying that 'this is my plan, you know, it’s my way or the highway!’,” Cuomo said.
Cuomo says if lawmakers offer an alternative plan that saves as much money as his plan, then he’s open to talks. The governor says his plan will save $113 billion dollars in future decades.
A spokesman for the state’s largest public workers union, the Civil Service Employees Association, says even without the 401k option, Cuomo’s proposed Tier VI benefit plan is too meager.
CSEA’s Steven Madarasz, in a statement, said “The Tier 6 plan represents a 40 percent reduction in benefits, with or without options. That is all about corporate CEOs driving an agenda that tells future nurses, school bus drivers, highway workers and others to give up hope of future security.”