Part of Governor Andrew Cuomo’s “Tier VI” proposal to make pension benefits for public employees of New York’s State and local government more affordable and sustainable over the long term is an optional 401(k)-style plan.
Today, the U.S. Census Bureau released new figures on public retirement systems.[1] A quick look at the data underscores why New York’s pension system is costly, how it is out of line with others and why reform is needed.
Governor Andrew Cuomo’s budget proposals for fiscal year 2012-13 include an important first step towards fixing a longstanding flaw in the way New York pays for its Medicaid program.
President Carol Kellermann pens an op-ed urging the legislature to pass Governor Cuomo's proposal to modernize the State's pension system by offering new employees a 401(k)-style option.
The CBC today released a policy brief titled “The First Priority in the New Year – Pension Reform.” It compiles the latest financial data on the rising cost of pension obligations of government entities in New York State, including New York City, other localities and the MTA, and, in doing so, underscores the case for comprehensive pension reform to alleviate financial burdens statewide.
As 2012 begins and the New York State Legislature begins a new session, its first priority should be reform of the financing and benefits of pensions for state and local employees. Such reforms are urgently needed because (1) the relatively high cost of the current system places New York at a competitive disadvantage, and (2) these costs have been growing and are projected to continue growing, making a bad situation worse.
Last month, the Spending and Government Efficiency Commission (SAGE Commission) appointed by Governor Cuomo issued its final report. One notable recommendation is that a renewed effort be made to improve the accountability of State government through the creation of a performance management system.
As Governor Cuomo prepares his executive budget, he should seek structral changes that slow down the state's most potent cost-drivers (pensions, school aid and Medicaid), halt additional economic development spending and steer clear of budget tricks. Senior Research Associate Tammy Gamerman pens an op-ed for the New York Post.
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