Comptroller Tom DiNapoli is doing his job

ALBANY, NY - The New York State Public Employees Federation (PEF) today commended State Comptroller Tom DiNapoli for his stand in favor of a secure pension fund for public workers.

"Tom DiNapoli is talking about the facts, and the facts show our defined benefit-pension system is the best way to provide retirement security," said PEF President Ken Brynien.

"Meanwhile, the highly paid lobbyists for millionaires in the Business Council and other right-wing groups are trying to take money out of the pockets of nurses, firefighters and other workers, so Wall Street can further enrich itself at the expense of the middle class.

"I understand why the supporters of Tier 6 are afraid of the truth, because the truth is their plan will hurt the average worker and make retirement with dignity an impossibility.

"They are attacking Comptroller DiNapoli because he simply set out the real facts, as he is obligated to do as a fiduciary: 

• The average pension in the State Retirement System is $19,151 per year;

• 76 percent of these pensions are less than $30,000;

• When Tier 5 was adopted two years ago, the governor's Division of Budget projected it would reduce pension costs for state and local government by more than $35 billion over 30 years; and

• We don't need a Tier 6 to cut pension costs, we just need to let Tier 5 work.

"The millionaires and lobbyists who want to take away the hope of a secure retirement from hard-working nurses, firefighters, teachers and other workers should be ashamed," said Brynien.

"Tom DiNapoli has been recognized nationally for having one of the best-managed state pension funds. We are proud New York has a comptroller who tells the truth and stands up for the rights of people who work for a living."

PEF Budget Priorities

PEF is calling on state lawmakers to modify the Executive Budget in several areas. Our collective action is necessary for success in the budget battle ahead.

Memo to NYS Legislators

PEF Vice President Tells Legislators to Beware Dangerous Budget 'Reform' Proposals

ALBANY, NY - "It appears, in Albany 'reform' is whatever you spin it to be," said state Public Employees Federation (PEF) Vice President Joe Fox.  Fox testified today in Albany at a state legislative hearing on how the governor's Executive Budget proposal would affect the state workforce.

"The Executive Budget calls for what the governor describes as reforms to the state's pension system, Civil Service and some fundamental changes in the way the state does business," Fox said.

"PEF supports true reforms that improve state services, but in this case some of the budget proposals are way off the mark.  They would undermine public service, subvert merit and fitness and throw open the door to cronyism, patronage and unrestrained waste.

"For instance, the proposal for a new state pension Tier 6 with dramatically reduced benefits and increased employee costs is called a reform, but would be very destructive to public service.  It would mean a lower standard of living for future retirees, reduce the ability to recruit individuals who see public service as a career and create a mercenary mentality where the commitment to public service no longer exists.

"The governor's proposal, which would ensure new employees receive inferior benefits to their more senior co-workers, is symptomatic of the selfish, I-got-mine attitude that has allowed the wealthiest to continue to build their wealth at the expense of the 99 percent," Fox said.

"Several of the proposed reforms to civil service would shred the merit-and-fitness system that protects fairness and high standards," Fox said.  "Proposals that are supposed to reduce costs by making it easier for the state to hire and transfer state employees would allow state agencies to bypass the best qualified candidates to hire or promote individuals with lower scores on competitive tests or who haven't even taken the tests.

"Still other proposed reforms in the budget would hand off state services and responsibilities to private contractors and reduce quality standards, accountability and legislative oversight," Fox added.

The testimony in its entirety is available here.

Statement of PEF President Ken Brynien on proposed state budget

It is time for our state's elected leaders to recognize that nothing gets done without workers: trained, competent, professional workers. The governor's proposed budget ignores the fact that state workers have done their share to address the state's fiscal problems.

Since 2008, the state's workforce has been reduced by 16,000 jobs. The state pension plan was changed in 2010 to create a new Tier 5 that will save state and local governments $35 billion over the next 30 years. In 2011, PEF agreed to a labor contract that freezes pay, requires workers to pay more for health insurance and cuts salaries through furloughs. This contract will save the state more than $230 million over the next four years.

The governor's proposal calls for another new pension tier that will do little, if anything, to affect the 2012-13 state budget. The Tier 6 proposal is nothing more than a false choice of accepting severely reduced pension benefits or joining an inefficient 401k style pension system. It would force public employees into a pension gamble that virtually guarantees a lower level of benefits. This proposal is similar to the misguided proposals for reforming Social Security proposed by former President George W. Bush.

Our members earned their pensions, which are reasonable. The average state pension is $19,000 per year. The current increases in pension costs don't result from increased pension benefits. They were caused by the collapse of the stock market.

Initiatives proposed in this budget will increase the privatization of key state services in agencies that serve youths and people with disabilities. The governor has also proposed "reforms" to the Civil Service system that will make it easier to appoint politically connected individuals by making who you know a more important factor in hiring than what you know.

While the overall size of the state workforce remains relatively unchanged in the budget, many state agencies remain severely short-staffed. This hinders the ability of agencies to perform their statutorily mandated mission which can only lead to wasteful and costly contracting out of state services as agencies struggle to meet their statutory mandates. For example the Department of Transportation has already lost 1,900 employees since 2000 including more than 900 engineers. They will lose another 91 employees this year including 62 engineers. During this time period DOT has increased its spending on consultant engineers even though they cost between 50 percent to 75 percent more than state employees. In the last year alone, DOT has increased its spending on consultant engineers by 22 percent.

We support a different approach to budgeting. Respect the professionalism of the state workforce and we can work together to get the job done.

PEF Statement on New State Budget

For the last two months PEF has conducted an aggressive campaign to modify the proposed state budget in order to prevent the layoff of state workers and to preserve essential public services. On Sunday March 27, the Governor and legislative leaders announced agreement on a new state budget. Not all the details are available and no budget bills have been passed as of March 29. We know that the legislature made some changes that will mitigate some of the negative impacts of the proposed budget. But we also expect that many cuts in public services will be enacted, and that there is a serious risk of layoffs as a result. It is unfortunate that the Governor thinks it makes sense to threaten the jobs of public workers while giving a tax cut to millionaires. PEF will analyze the budget as soon as details become available and we will continue to fight for the public interest and for the jobs of our members.