New York, Unions Strike $557 Million Pension Deal for 787,240 Workers
Updated
Updated · Newsday · Jun 28
New York, Unions Strike $557 Million Pension Deal for 787,240 Workers
1 articles · Updated · Newsday · Jun 28
Summary
$557 million in annual pension sweeteners were folded into New York’s May budget after a two-month negotiation, delivering one of the biggest rollbacks of Tier 6 since it was created in 2012.
787,240 public employees hired on or after April 1, 2012 will see key changes: teachers can retire at 58 with 30 years of service, other workers will pay lower contribution rates, and more overtime can count toward pensions.
Labor leaders had opened with a package worth more than $1.5 billion, but competing priorities among teachers, police, firefighters and state workers forced trade-offs before a final deal was struck around May 22.
$440 million of the yearly cost will fall on local governments and school districts, with the state covering $118 million, prompting complaints that the changes will strain budgets without solving hiring and retention problems.
The agreement marks a major election-year win for unions after years of campaigning to undo Tier 6, though labor leaders say the push for broader parity with older pension tiers will continue.