ALERT: Effect of Tier 6 on Current Employees

Please be advised, that all current public employees who are eligible but not required to join a public retirement system, will be required to enter Tier 6 if they opt to join the system on or after April 1, 2012, without regard to the date they were hired. 

We are encouraging all members to be aware of this fact and individuals should join the retirement system immediately if they wish to enter Tier 5 rather than Tier 6.  This must be done prior to April 1, 2012.

Statement of PEF President Ken Brynien on passage of Tier 6

ALBANY, NY - "Speaking today for the 54,000 members of the New York State Public Employees Federation (PEF), we are appalled that state legislators finally broke last night and gave in to the governor's relentless demand for a new pension tier that will do nothing to help the state or local governments deal with their current budget demands.

"Not one of our members today will be in this new pension tier, but they all understand how it will undermine the high standards they work so hard to uphold throughout state service. The state has too few benefits to offer prospective employees now, with forced furloughs, rampant short-staffing and employee morale at rock-bottom lows. This new pension tier means any new hires the state attracts must work harder and longer for a retirement that's significantly less secure than those of their more senior coworkers.

"We can only hope our state senators and Assembly members will buck up their courage and face down this governor's demands for this budget that would undermine services and protections for New Yorkers, including services to cancer patients, New Yorkers with mental illness and developmental disabilities, and troubled children."

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."

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.

A MESSAGE TO STATE LEGISLATORS

We are New York State’s public workers.

We are nurses, teachers, engineers, parole officers, and many other professionals.

We have done our part to solve the State’s budget 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 thirty years.
• In 2011 we 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.

Enough is enough!

Say NO to Tier 6

No more cuts to state workers

We need our legislators to speak up for the people who do the work- New York’s public workers.