Deferrals of pension fund contributions by New York State and localities relies on unconvincing arguments by the State Comptroller that the plan is justified by the need for short-term relief from rising pension costs and that it is transparent.
One misconception in the current debate on the pension changes proposed by Governor Andrew Cuomo – known as Tier VI – is that employees whose duties require certain physical capacities will be forced to work until age 65.
Earlier this month, Mayor Michael Bloomberg presented New York City's Financial Plan for the next four years. It demonstrates a stark new reality: there is no large surplus of revenues, as there has been in past years, to help balance the budget.
Gov. Cuomo’s proposed “Tier VI” pension formula for future state and local government employees is more than fair by national standards. With New Yorkers now paying more than twice the US average per person for public-employee pensions, it’s time to rein in these costs.
The pension reform proposal that Governor Andrew Cuomo submitted with the Executive Budget, known as Tier VI, would increase contributions from new employees to the pension funds of New York’s state and local governments, including New York City.
Private contractors awarded contracts for the construction or maintenance of public works, as well as building service workers, are required to be paid the prevailing wage. However, the process for determining prevailing wage is neither straight-forward nor transparent.
Last week, Mayor Michael Bloomberg presented New York City’s Financial Plan for the next four years, beginning with the current fiscal year 2012 (which ends June 30) through fiscal year 2016. The plan contains an important signal about the changing fiscal context in which the Mayor and the City Council must balance the budget.