March 15, 2012 – New York State Governor Andrew Cuomo’s newly enacted changes to the state’s pension plan are unfair to public workers who have already made sacrifices, says the AFL-CIO, the U.S.’s largest labour group.
The stage legislature passed the governor’s Tier 6 pension bill that raises employee contribution rates and introduces a defined contribution plan for new non-union hires making $75,000 or more.
The passage of the pension legislation follows opposition from union leaders which led to concessions from the governor, including scaling back the DC option and not making significant changes to the pension plans of NYC firefighters and police officers.
However, the AFL-CIO strongly condemned the governor’s plan, and urged workers to protest.
New York labour leaders say the pension system is stable, and that improving market conditions will continue to strengthen pension funds. The governor’s plan will leave new state employees with inadequate retirement income, labour leaders say.
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• ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans.
