| Comptroller's plan would give
employees more money McCall unveils Pension Equity agenda |
|
| By MARTIN O' CONNOR As The Communicator went to press, NY State Comptroller H. Carl McCall announced his Pension Equity Legislative Agenda. McCall's agenda includes: - a permanent Cost of Living Adjustment (COLA); - reducing employee pension contributions; - Tier Equity; - improved death benefits for current members; and, - providing retirement service credit at a reduced rate for members with military service during war time. "The assets of the Common Retirement Fund have grown tremendously," McCall said. "The benefit improvements I'm proposing won't cost the taxpayers anything - the Retirement Fund can afford them." "We have been saying for the last few years that the Retirement Fund can afford increased benefits," said PEF President Roger Benson. "Employer contributions have averaged 1.4 percent since 1992, and they are now contributing zero. Meanwhile, 72 percent of PEF members are contributing 3 percent of their salary to the pension system. "This is wrong, and we are seeking ways to change this situation," Benson added. Benson had directed PEF's Legislative Department to explore the possibility of reducing of the employees' contribution prior to the comptroller's press release. Late last year, Transport Workers Union Local 100 reached agreement on a contract with the Metropolitan Transportation Authority (MTA), a pact that includes agreement by the MTA to have legislation introduced to reduce employees' contributions to 2 percent of their salary. "The thing you must keep in mind about this reduction is that the TWU employees also have a 55/25 plan," said PEF's Legislative Director Brian Curran. "Some of their members were paying 5.3 percent of their salary for that plan, so that the reduction was not 1 percent, but 3.3 percent. "The "55/25" plan allows for employees to retire without penalty if they have 25 years of service credit and are at least 55 years of age, Curran added. "That is a significant difference and President Benson has asked me to look into the feasibility and cost of offering a 55/25 plan to members of the State Retirement System," Curran said. |
|