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  • Originally posted by Retriever View Post
    I see many changes including hiking the employee contribution to 6%, increasing retirement age from 62 to 65, vesting after 12 years, etc. None are going to be popular, but I do not see anything about transitioning to a 401k based system. Was this ever suggested by AC?

    Comment


    • Originally posted by CivilServant14 View Post
      I see many changes including hiking the employee contribution to 6%, increasing retirement age from 62 to 65, vesting after 12 years, etc. None are going to be popular, but I do not see anything about transitioning to a 401k based system. Was this ever suggested by AC?
      Cuomo has provided an option in tier VI to choose either a state pension or a TIAA CREF style retirement system.

      TIAA CREF Type Retirement Option: Workers will be vested after 1 year on the job. He stated that it benefits SUNY professors who do not stay employed with the state for the long haul.

      The only thing I like about tier VI is the TIAA CREF Type Retirement Option. Everything else is BS.

      Comment


      • • Tier VI Pension Reform. Enacting fair and equitable pension reform is critical to
        providing State and local governments with fiscal relief over the years to come. A Tier
        VI pension design proposal applicable to new public employees will reduce pension
        costs by one half compared to the existing benefit design, and save public employers
        outside of New York City $83 billion over 30 years, while New York City estimates savings
        of $30 billion over 30 years. Savings will occur by instituting the following changes:

        - Increasing employee contributions from 3 percent to 4, 5 or 6 percent depending on
        salary level;
        - Implementing a variable “risk/reward” system under which employee contributions
        would decrease or increase, within limits, tied to economic conditions;

        - Raising the retirement age from 62 to 65 and prohibiting early retirements;

        - Decreasing the pension multiplier from 2 percent to 1.67 percent for each year of
        credited service (e.g. employees with 30 years of service would receive a pension
        equivalent to 50 percent of final average salary versus 60 percent of final average salary
        under Tier 5); and

        - Excluding overtime and other payments from the formula used to calculate final average
        salary for pension allowances.

        - Creating a defined contribution option for public employees which would be voluntary
        for new employees and improve financial planning for public employers. The new
        option would:

        Provide a minimum employer contribution of four percent of salary.

        Provide for additional employer contributions of up to three percent of salary when
        matched by the employee.

        Afford public employers financial stability by limiting employer contributions to a
        maximum of seven percent.

        Offer a portability and vesting feature not available with defined benefit options.

        Comment


        • Cuomo Crafts Budget On Public Pension, Teacher Evaluation Reform

          Governor Andrew Cuomo on Tuesday proposed an overhaul to the state's pension system and new teacher evaluation system while presenting his $132.5 billion budget plan for the next fiscal year.

          Your Call On The State Budget

          Do you agree with Cuomo's proposals to balance the budget with no new taxes or fees? Do you support pension reform, taxing the rich more to generate revenue or a new method to evaluate teachers? Join the conversation on "The Call" at 9 p.m. with NY1's John Schiumo, or Share your thoughts.
          The plan reduces overall spending by .2 percent from last year.

          In a PowerPoint presentation, Cuomo said his executive budget includes no new taxes, one shot revenues or gimmicks.

          It also closes a budget gap of $3.5 billion.

          However, while the governor plans to increase education spending by 4 percent or roughly $805 million, he also plans to make that increase contingent upon real reform and, specifically, teacher evaluations.

          He's giving the state's teachers 30 days to come up with a statewide evaluation system or he will write his own into the budget for the legislature to approve.

          Districts would have one year to get the new system up and running or the state would withhold the promised 4 percent increase in school aid.

          "Somewhere along the way we've become more consumed with perpetuating the bureaucracy than focusing on achievement for the student," said Cuomo.

          Medicaid spending will also go up by 4 percent. The state plans to take over the growth of Medicaid, which will eventually save New York City $954 million over five years.

          Another major item outlined by Cuomo is a new public pension tier, similar to a 401k.

          It would feature progressive contribution rates between 4 and 6 percent, with shared risks and rewards for employees and the state.

          The move is expected to save taxpayers and local governments across the state over $100 million over the next 30 years.

          "By definition, pension reform is not gonna cost you, save you anything in the year it's enacted. By definition it's on the out years. But what we're doing to ourselves here is allowing cholesterol to build up and we see the number going up, up, up, up, up," said Cuomo.

          However, union leaders are already pushing back on that proposal.

          The budget also includes $15 billion in infrastructure spending.

          The upgrades are expected to create thousands of jobs, including the proposed construction of the country's largest convention center in Queens.

          Cuomo, who again touted the project being developed by Genting Americas, shrugged off critics who don't want it by insisting that no public funds will be used.

          "It's their money, their capital, their risk, their cost. They build it, they operate it," said Cuomo.

          The governor vowed to repeat what happened last year and bring in the budget on time.

          "I wanted to start on time today because I want to end on time, not just today, but when we finish the budget," said Cuomo.

          Some say chronically late budgets had come to symbolize dysfunction in Albany. It’s a culture Cuomo vowed to change.

          Comment


          • "Cuomo's Gotta Go"

            Comment


            • Governor Andrew Cuomo on Tuesday proposed an overhaul to the state's pension system and new teacher evaluation system while presenting his $132.5 billion budget plan for the next fiscal year.

              The plan reduces overall spending by .2 percent from last year.

              In a PowerPoint presentation, Cuomo said his executive budget includes no new taxes, one shot revenues or gimmicks.

              It also closes a budget gap of $3.5 billion.

              However, while the governor plans to increase education spending by 4 percent or roughly $805 million, he also plans to make that increase contingent upon real reform and, specifically, teacher evaluations.

              He's giving the state's teachers 30 days to come up with a statewide evaluation system or he will write his own into the budget for the legislature to approve.

              Districts would have one year to get the new system up and running or the state would withhold the promised 4 percent increase in school aid.

              "Somewhere along the way we've become more consumed with perpetuating the bureaucracy than focusing on achievement for the student," said Cuomo.

              Medicaid spending will also go up by 4 percent. The state plans to take over the growth of Medicaid, which will eventually save New York City $954 million over five years.

              Another major item outlined by Cuomo is a new public pension tier, similar to a 401k.

              It would feature progressive contribution rates between 4 and 6 percent, with shared risks and rewards for employees and the state.

              The move is expected to save taxpayers and local governments across the state over $100 million over the next 30 years.

              "By definition, pension reform is not gonna cost you, save you anything in the year it's enacted. By definition it's on the out years. But what we're doing to ourselves here is allowing cholesterol to build up and we see the number going up, up, up, up, up," said Cuomo.

              However, union leaders are already pushing back on that proposal.

              The budget also includes $15 billion in infrastructure spending.

              The upgrades are expected to create thousands of jobs, including the proposed construction of the country's largest convention center in Queens.

              Cuomo, who again touted the project being developed by Genting Americas, shrugged off critics who don't want it by insisting that no public funds will be used.

              "It's their money, their capital, their risk, their cost. They build it, they operate it," said Cuomo.

              The governor vowed to repeat what happened last year and bring in the budget on time.

              "I wanted to start on time today because I want to end on time, not just today, but when we finish the budget," said Cuomo.

              Some say chronically late budgets had come to symbolize dysfunction in Albany. It’s a culture Cuomo vowed to change.

              Comment


              • Gov. Andrew Cuomo Unveils Budget, Proposes Major Pension & School Reform

                Governor Andrew Cuomo’s new budget proposes major changes in New York State, but the devil is not so much in the financial details as it is in the reforms he wants.

                Cuomo’s proposal would increase state spending by 2 percent, or about $89 million. However, the overall plan, including federal funding tied to state spending, is a fraction of 1 percent lower than the current budget. It would eliminate the $2 billion deficit.

                In past years, the big fight in Albany has been about how much is allocated to specific programs, but this year, it’s going to be very different and very difficult.

                “What we’re talking about here are major shifts. Don’t underestimate what we’re trying to achieve,” Cuomo said. “If you leave the status quo – if you do nothing — you won’t have the tension. But if we leave the status quo, then we will have failed also.”

                Instead of doing a regular budget that deals with things like how much money New York City, Westchester or Long Island get. Governor Cuomo is trying to use state money in a carrot and stick approach to get major and long overdue reforms, CBS 2′s Marcia Kramer reported.

                Those measures include pension reform and an evaluation plan for public school teachers.

                “We need pension reform, we need it desperately,” Cuomo said.

                The governor wants to reduce pension benefits in a big way for new employees hired by the state, the city and other localities.

                Among the items in the plan include:

                Increase the retirement age from 62 to 65

                Offer employes an optional 401k plan instead of a state pension.

                Eliminate overtime pay in calculating pensions.

                The issue of overtime is by far the most controvertial part of the plan.

                “The abuses of overtime are rampant, widespread and have gone on for years,” Cuomo said.

                Mayor Michael Bloomberg lauded pension reform included in the plan, which the mayor said could “save the City billions in the long-term.”

                The governor also wants to overhaul the education system. He’s threatening to withhold $800 million in school aid. New York City would lose $224 million to districts who don’t adopt plans for getting rid of bad teachers, Kramer reported.

                “Somewhere along the way, we’ve become more consumed with perpetuating the bureaucracy than focusing on achievement for the student,” Cuomo said.

                Since this was the governor’s budget address, there are some financial initiatives that effect our area.

                The governor wants the state to pick up a share of the Medicaid payments made by the city and other localities. The state will swallow $1.2 billion over 5 years — $954 million to New York.

                The budget proposal also received strong support from Mayor Michael Bloomberg. In a statement, Bloomberg said the budget “demonstrates a bold commitment to tackle some of the toughest challenges facing our great state.”

                This year’s budget will not have the huge cuts in education and health care spending that were necessary last year as part of the effort to close a $10 billion budget gap.

                “Last year was such a success — not because we did the easy thing, because we did the hard thing last year. When you look back, it seems easy. It wasn’t easy! Look at the bags and lines on my face, it wasn’t easy,” Cuomo said

                Hofstra University’s Larry Levy says the governor has set himself a hard task.

                “It’s a great strategy to cloak anything in reform. If you take a cut, it’s reform. If you add anything, it’s reform. The trick is at the end of the day, to carry it out and be seen as a reformer and not just a talker,” Levy said.

                Comment


                • PEF, CSEA not so keen on Tier VI proposal

                  The state’s two largest public employees unions are giving the big thumbs-down to Gov. Andrew Cuomo’s proposal for a less-generous Tier VI pension package, plus the option for a TIAA CREF-style defined contribution plan for new employees — the last item described as a gamble that recalls President George W. Bush’s attempts to retool Social Security.

                  From CSEA President Danny Donohue:

                  “Governor Andrew Cuomo’s proposed budget lays out some complex challenges in many areas. CSEA remains concerned that the governor seems out of touch with the day-to-day challenges that public workers in both state and local government face as a result of his budget priorities. Too many necessary services in every part of the state are deteriorating because people are working short staffed and at risk without adequate equipment, training and backup.

                  “CSEA has no hesitation in saying that the proposal for a new public employee pension tier is an assault on the middle class and a cheap shot at public employees. It will provide no short-term savings and will mean people will have to work longer, pay more and gain less benefit. Simply put, the Tier VI provisions would be onerous on working people and undermine middle class security and the governor ought to be more concerned about that.

                  “The governor’s proposal of a 401K style option as part of Tier VI would certainly be attractive to highly paid political appointees who could max out their contribution, have it matched by the public employer and take it with them as they come and go. It’s a lot different for front-line career employees who have to worry about whether being at the mercy of Wall Street ups and downs will provide them with adequate retirement security 30 years from now.”

                  From PEF President Ken Brynien:

                  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.

                  Comment


                  • Meet Tier VI: Details of new pension package

                    – Increasing employee contributions from 3 percent to 4, 5 or 6 percent depending on salary level;

                    – Implementing a variable “risk/reward” system under which employee contributions would decrease or increase, within limits, tied to economic conditions;

                    – Raising the retirement age from 62 to 65 and prohibiting early retirements;

                    – Decreasing the pension multiplier from 2 percent to 1.67 percent for each year of credited service (e.g. employees with 30 years of service would receive a pension equivalent to 50 percent of final average salary versus 60 percent of final average salary under Tier 5); and

                    – Excluding overtime and other payments from the formula used to calculate final average salary for pension allowances.

                    – Creating a defined contribution option for public employees which would be voluntary for new employees and improve financial planning for public employers. The new option would:

                    Provide a minimum employer contribution of four percent of salary.

                    Provide for additional employer contributions of up to three percent of salary when
                    matched by the employee.

                    Afford public employers financial stability by limiting employer contributions to a
                    maximum of seven percent.

                    Offer a portability and vesting feature not available with defined benefit options.

                    Comment


                    • Cuomo supports state court budget proposal

                      1/17/2012

                      ALBANY, N.Y., Jan 17 (Reuters) - Gov. Andrew Cuomo on Tuesday praised the Office of Court Administration's recent proposal to cut its budget by more than $19 million, saying the plan could "make the court system work better and smarter."

                      The $2.3 billion spending plan, submitted by OCA in December proposed to cut $3.5 million, or 0.15 percent, in spending from the current fiscal year despite $70 million in increased costs, including nearly $28 million in salary hikes for New York's 1,300 trial judges.

                      "The budget submitted by the Chief Judge (Jonathan Lippman) recognizes the ongoing budgetary pressures the state faces, addressing fiscal reality while supporting the courts' ability to uphold their constitutional duty," Cuomo said Tuesday in a statement that accompanied his $132.5 billion spending proposal for fiscal year 2013. "The (judiciary) budget as submitted both sustains the savings achieved last year, and holds the line on new spending."

                      The praise is a departure from last year, when Cuomo singled out OCA for, he said, failing to share in the sacrifices made by state agencies when it requested only $70 million in cuts. The legislature slashed an additional $100 million from OCA's final budget.

                      The court system is currently grappling with the fallout from the $170 million in cuts, which have necessitated hundreds of layoffs, shorter court hours and program cutbacks.

                      "The judiciary is able to present this negative-growth budget, despite increased costs, as a result of ongoing reassessment of court operations and a rigorous cost-cutting program," Chief Judge Jonathan Lippman wrote in a Dec. 1 letter to state officials.

                      'GOOD FIRST STEP'

                      Lippman on Tuesday told Reuters that he appreciated Cuomo's approval of the spending plan.

                      "This is only step one, but it's a very good first step," he said shortly after Cuomo's budget presentation. "We're trying so hard to get a budget that meets the difficult needs of the state in this fiscal climate and yet allows us to meet our constitutional responsibilities."

                      For the second straight year, court administrators have proposed only marginal funding for judicial hearing officers -- retired judges appointed to handle specialized cases. Court officials expect to save about $20 million in retirement and Social Security contributions for laid-off workers.

                      Meanwhile, OCA's proposal sets aside $21.3 million in contractually-required raises for non-judicial union employees.

                      Programs that provide free civil legal services to those who can't afford lawyers also received a boost, with the judiciary requesting $25 million, which is double the current funding.

                      "It continues to be poor people that are hit the hardest because of the difficult economy, and we're trying to do our part to make sure those people don't fall off the cliff," Lippman said Tuesday.

                      The New York City and State Bar Associations have called on lawmakers to approve OCA's proposals in full ahead of the April 1 budget deadline. In a statement Tuesday, State Bar Association President Vincent Doyle, a partner at Connors & Vilardo in Buffalo, said the group would actively lobby the legislature to pass the judiciary's budget.

                      Comment


                      • Originally posted by CivilServant14 View Post
                        I see many changes including hiking the employee contribution to 6%, increasing retirement age from 62 to 65, vesting after 12 years, etc. None are going to be popular, but I do not see anything about transitioning to a 401k based system. Was this ever suggested by AC?
                        I believe the 401k v.s pension idea came out when the tier 5 was drafted but unions would not compromise the pension. Military is also looking into a 401k instead of a pension program.
                        I've also heard through many people that once you pay into a tier you are locked in. Does anybody now the rules? I've paid into tier 5 in the past but I'm not currently. I believe I'm a tier 5 for life. Correct me if I'm wrong

                        Comment


                        • You're right. If you go back to state service you can call the pension office and they will guide you on what to do. Even if you return to state service and TIER VI has been created.

                          Comment


                          • Originally posted by Safetyman View Post
                            You're right. If you go back to state service you can call the pension office and they will guide you on what to do. Even if you return to state service and TIER VI has been created.
                            Thanks

                            Comment


                            • I found this on NY state's website. The courts state that the budget will allow the courts to fill a few critical operational positions that maximize the efficiency of the courts. I wonder if those are court officer positions.


                              Budget Highlights

                              The Judiciary’s General Fund budget request for Fiscal Year 2012-2013, including fringe benefits, totals $2.3 billion. The proposed request absorbs $70 million in increased costs, including funding for the first judicial salary increase in more than 13 years, and funding for contractually-required increments for eligible represented employees. Despite these increased costs, the request reflects a General Fund decrease of $3.9 million over the 2011-12 budget. This decrease is a result of an ongoing reassessment of court operations and a rigorous cost-cutting program, including the continued reduction of the non-judicial workforce. Over the past two fiscal years, as a result of participation in the Early Retirement Incentive Program, targeted layoffs, a hiring freeze, and other measures, the non-judicial workforce of the court system has been reduced by more than 1,300 positions, a reduction of more than eight percent.

                              The Judiciary has also undertaken an ongoing reassessment of its operations, to find better and smarter ways of doing business. Toward that end, the Judiciary has, among other measures, modified court operations to reduce overtime costs, streamlined administrative functions, and largely eliminated in-person training for Judges and court personnel in favor of web-based training.

                              The proposed Judiciary budget would permit the courts to modify at least some of the measures that had the most immediate and direct negative impact on court users, including backlogs and delays. For example, this budget will permit some relaxation of the early court closing times that were implemented this year. While the total size of the court system’s non-judicial workforce will decrease further, the budget will allow the courts to fill a few critical operational positions that maximize the efficiency of the courts. The proposed budget also provides $25 million for the Civil Legal Services Program to address a troubling issue that goes to the heart of the courts’ mission – providing equal justice to the millions of litigants who appear each year without counsel in eviction, foreclosure, domestic violence, consumer debt, and other cases involving the essentials of life.

                              The Judiciary’s All Funds budget request for Fiscal Year 2012-2013, including fringe benefits, totals $2.5 billion, an increase of $3.6 million over the 2011-12 All Funds budget. The increase is due to a $5.8 million increase in Local Assistance funding for the Court Facilities Incentive Aid Program, partially offset by a $2.2 million decrease in State Operations funding.

                              The Judiciary’s proposed budget reflects the court system’s continuing commitment to work with the other branches of government in addressing the State’s fiscal crisis, while ensuring that the courts are also able to provide timely and fair justice to all New Yorkers.

                              Comment


                              • Budget cuts eroding public confidence in judiciary: report

                                1/18/2012

                                NEW YORK, Jan 18 (Reuters) - Budget cuts to the New York state judiciary have strained virtually every aspect of the court system, increasing delays, necessitating layoffs and adversely impacting those who depend on it for justice -- particularly poor litigants with limited resources, according to a report issued Wednesday by the New York State Bar Association.

                                The 68-page report was released after months of interviewing and surveying judges, attorneys and bar members from across the state about the impact of $170 million in reductions to the 2011-12 court budget.

                                "The impact of reductions in funding for New York State courts during the 2011-2012 year has been substantially harmful and far-reaching," the report said, adding that the cuts have created an "eroded sense of public confidence" in the judiciary.

                                The report echoes what many advocates, court administrators, judges and lawyers have said for months about the effect of the cuts, which were imposed by the governor and the state legislature last year as part of a broader effort to close a massive statewide budget gap.

                                At a December hearing in front of a task force studying the issue, a parade of witnesses described pervasive delays and overcrowded dockets. The task force, organized by the New York County Lawyers' Association, is currently finalizing its own report on the consequences of the budget cuts.

                                A. Gail Prudenti, the state's chief administrative judge, said she has been looking closely at how the court system's budget funds should be allocated going forward.

                                "There is no doubt that we acknowledge that the budget cuts have had an impact on the court," Prudenti said in an interview Wednesday. "But we also believe very strongly that we are doing our best."

                                INCREASED DELAYS

                                The budget cuts have forced the OCA to make several tough decisions, according to the report.

                                A decrease in courtroom hours as a result of a sharply reduced overtime budget has left court dockets overcrowded and lengthened the amount of time that trials and other court business require, the report said. With rare exceptions, judges now end court no later than 4:30 p.m., even when testimony is ongoing or a jury is deliberating.

                                That has made it more challenging to seat jurors and has put pressure on jurors to complete their deliberations as quickly as possible.

                                And delays in cases have had a ripple effect on the entire docket.

                                In Ulster County, for example, securing a date for a civil trial took five months before the cuts, but now routinely lasts a year or more, according to the report.

                                Criminal defendants are more frequently held for longer than 24 hours between their arrest and arraignment, in violation of a constitutional mandate, the report said. And incarcerated defendants awaiting trial must spend more time behind bars while they wait for their cases to proceed.

                                The report noted that emergency cases -- such as child custody and domestic violence cases -- cannot be heard the same day they are filed, forcing families to incur the expense of additional child care and time off from work.

                                The near-elimination of the judicial hearing officer program, in which retired judges heard specialized cases, has added to judges' workload, the report said. Layoffs of court staff have increased wait times for litigants planning to file paperwork and for members of the public seeking access to court buildings.

                                'CHILDREN BEAR THE BRUNT'

                                The already overburdened family courts have struggled to keep up as well.

                                In written testimony to the state bar association last week, Edwina Richardson-Mendelson, the administrative judge for New York City Family Courts, said that on some days petitioners cannot file court papers because of reduced hours and staff, and that open court dates are sometimes unavailable for months.

                                "In Family Court, the children bear the brunt of this," she said. "They wait longer and longer (sometimes years) to go home from foster care, or to find out which parent they will live with."

                                While the court system has taken steps to stretch its dollars this year, it continues to grapple with severe budgetary constraints.

                                The OCA's proposed 2012-13 $2.3 billion spending plan would cut $19 million from the current year's budget. But the budget has drawn praise from Gov. Andrew Cuomo, who criticized the OCA last year for failing to make sufficient cuts in its initial proposal.

                                "I think the governor has clearly recognized that this budget has really taken a good hard look at restructuring and reengineering the court system," Prudenti said. "In these unprecedented times of financial crisis, we have done very well with the resources that we have."

                                The budget does increase funding in at least one area: free civil legal services for litigants who cannot afford a lawyer, an effort Prudenti said was particularly important given the fragile state of the economy.

                                Comment

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