Retirement age and pension contributions would increase for New York state, local government and school employees under a bill proposed by Gov. Andrew Cuomo.
The bill would create a new tier of pension eligibility — Tier VI — that would raise the retirement age for new employees to 65 from 62, and employee contributions would increase to 6% of total annual pay. It also increases the vesting period for new employees to 12 years from 10 and ends early retirement, among other reforms.
A news release from Mr. Cuomo's office notes that state, local government and school pension employer contributions have increased to $6.6 billion from $368 million in 2001.
“The numbers speak for themselves — the pension system as we know it is unsustainable,” Mr. Cuomo said in the news release. “This bill institutes common-sense reforms to bring government benefits more in line with the private sector while still serving our employees and protecting our retirees. Reducing the skyrocketing pension burden faced by local governments and schools will also help get control of local property taxes that are driving New Yorkers from their homes and from the state.”