Governor Cuomo Signs Law to Enact Major Pension Reform
Pension
Reform Will Save State and Local Governments including New York City More Than
$80 Billion Over 30 Years
Albany, NY (March 16,
2012)
Published on Governor Andrew M. Cuomo
Governor Andrew M. Cuomo today, joined by Mayor
Bloomberg and elected officials from across New York State, signed into law
sweeping pension reform legislation that will save state and local governments,
including New York City, more than $80 billion over the next 30 years.
"For years rising pension costs have spelled
disaster for local governments across the state. That finally changed this week,
as we came together to put in place a bold pension reform plan that will save
taxpayers more than $80 billion over the next three decades," Governor Cuomo
said. "By putting the interests of the people of New York State first, we
overcame the obstacles that for so long have stood in the way of real reform and
delivered one of the most critical, widespread fiscal reforms the state has seen
in years. I thank Majority Leader Skelos, Speaker Silver, members of the
legislature, elected officials across the state, and particularly Mayor
Bloomberg for all the hard work that went into putting in place this important
new pension reform."
The state's rapidly growing pensions costs are
one of the most expensive mandates for local governments. In 2002 pension
payment from local governments were $1.4 billion and have grown to $12.2 billion
in 2012, an increase of over 650%. The pension reform plan passed by the Senate
and Assembly recognizes the unsustainability of the current system and takes
unprecedented steps to control growth, saving state and local governments,
including New York City, more than $80 billion over the next 30 years.
New York City Michael Bloomberg said,
"Skyrocketing pensions costs have limited the ability of cities and counties to
make investments vital to our future. So mounting pension costs have represented
a double tax: first paid by today's residents, and a second tax on our future.
One of the harder things to do in politics is to pass laws or take on projects
where the heavy political lifting happens up front and the major benefits do not
appear for years down the road. But that is exactly what happened here because
the Governor was willing to take on the challenge and lead. Our coalition of
mayors and country executives from across the state supported him throughout and
we are grateful members of the legislature took action so we can invest in the
future of our cities and counties, and in the future of our citizens."
Senate Finance Committee Chair John A.
DeFrancisco, said, "The pension reform spearheaded by Governor Cuomo is a real,
substantive change from the status quo which will help to provide fiscal
stability for taxpayers and local governments while putting New York on a path
for a stronger, more sustainable future. I praise the Governor for his
leadership and for bringing together the stakeholders and both parties to make
this happen for the people of this state."
Assembly Deputy Speaker Earlene M. Hooper said,
"I am a staunch supporter of unions, I am a beneficiary of the labor movement.
This was the most difficult vote I have had to take in the 24 years that I have
served the people. However, if we did not do pension reform, all of the hard
working people of the state of New York – through tax increases, fees etc. –
would suffer irreparable financial damage."
Oneida County Executive Anthony Picente said, "I
applaud Governor Cuomo for his leadership, and the State Legislature for working
with the Governor to achieve real pension reform. The Governor's willingness to
take on the special interests to get this done demonstrates his dedication to
the taxpayers of this state. Only by reducing the burdens placed on local
governments will we be able to lower taxes and reinvigorate New Yorkfs
competitive edge in attracting residents and businesses."
Syracuse Mayor Stephanie Miner said, "Once
again, Governor Cuomo has shown true leadership on critical issues facing cities
like Syracuse. As they did last year, the Legislature and Governor have engaged
in real reform to address some of the biggest problems facing taxpayers all
across New York. Pension costs are threatening tax increases, major spending
cuts and layoffs in cities like Syracuse. I am proud to support the Governor in
his efforts to bring fiscal responsibility back to Albany."
The new law puts in place a new Tier VI pension
plan for workers hired after April 1, 2012. Existing employees and retirees
retain all benefits. The new law includes:
The Governor's pension reform will save state
and local governments, including New York City, more than $80 billion over the
next 30 years. Savings are as follows:
Enacted Pension Reform Estimated Savings |
|
|
|
|
5 Year Savings |
10 Year Savings |
30 Year Savings |
Albany County |
$15,211,569 |
$67,778,940 |
$1,100,410,014 |
Allegany County |
$1,897,597 |
$8,275,736 |
$123,367,305 |
Broome County |
$8,886,763 |
$38,795,240 |
$578,485,784 |
Cattaraugus County |
$4,340,833 |
$18,870,358 |
$281,049,221 |
Cayuga County |
$3,209,417 |
$14,004,700 |
$208,802,515 |
Chautauqua County |
$6,239,100 |
$27,286,852 |
$407,089,557 |
Chemung County |
$3,909,646 |
$17,022,782 |
$253,644,415 |
Chenango County |
$2,325,290 |
$10,077,262 |
$149,957,169 |
Clinton County |
$3,890,903 |
$16,916,588 |
$251,959,409 |
Columbia County |
$2,658,719 |
$11,644,346 |
$173,788,819 |
Cortland County |
$1,924,811 |
$8,408,432 |
$125,403,830 |
Delaware County |
$2,070,328 |
$9,042,139 |
$134,846,742 |
Dutchess County |
$14,231,625 |
$61,918,418 |
$922,407,229 |
Erie County |
$41,308,304 |
$180,756,345 |
$2,697,072,881 |
Essex County |
$1,662,690 |
$7,287,506 |
$108,786,748 |
Franklin County |
$2,269,970 |
$9,857,589 |
$146,772,494 |
Fulton County |
$2,527,417 |
$11,018,669 |
$164,240,577 |
Genesee County |
$3,032,530 |
$13,200,211 |
$196,672,094 |
Greene County |
$2,096,799 |
$9,120,269 |
$135,855,853 |
Hamilton County |
$389,523 |
$1,718,474 |
$25,699,622 |
Herkimer County |
$2,653,666 |
$11,522,459 |
$171,555,471 |
Jefferson County |
$5,274,055 |
$23,057,618 |
$343,958,376 |
Lewis County |
$1,458,801 |
$6,468,132 |
$96,863,370 |
Livingston County |
$2,483,084 |
$10,849,563 |
$161,820,770 |
Madison County |
$2,770,733 |
$12,094,937 |
$180,347,698 |
Monroe County |
$33,065,375 |
$143,990,347 |
$2,145,590,618 |
Montgomery County |
$1,905,823 |
$8,287,170 |
$123,435,830 |
Nassau County |
$100,488,040 |
$438,215,138 |
$6,532,396,095 |
Niagara County |
$9,271,916 |
$40,582,198 |
$605,571,319 |
Oneida County |
$9,758,222 |
$42,423,232 |
$631,849,010 |
Onondaga County |
$22,684,639 |
$98,887,580 |
$1,473,944,881 |
Ontario County |
$5,019,535 |
$21,888,746 |
$326,288,408 |
Orange County |
$20,461,117 |
$88,813,258 |
$1,322,193,167 |
Orleans County |
$2,143,018 |
$9,252,203 |
$137,532,241 |
Oswego County |
$5,888,811 |
$25,536,563 |
$380,069,543 |
Otsego County |
$2,681,721 |
$11,654,475 |
$173,563,748 |
Putnam County |
$5,765,088 |
$24,979,656 |
$371,695,410 |
Rensselaer County |
$7,448,894 |
$32,536,696 |
$485,240,027 |
Rockland County |
$19,096,637 |
$83,298,828 |
$1,241,808,169 |
Saratoga County |
$8,000,164 |
$34,657,832 |
$515,679,829 |
Schenectady County |
$6,976,531 |
$30,522,004 |
$455,395,929 |
Schoharie County |
$2,294,792 |
$10,187,019 |
$152,605,586 |
Schuyler County |
$730,072 |
$3,223,983 |
$48,227,118 |
Seneca County |
$1,244,143 |
$5,431,428 |
$80,989,872 |
St. Lawrence County |
$4,407,984 |
$19,202,874 |
$286,171,455 |
Steuben County |
$4,279,298 |
$18,607,567 |
$277,155,020 |
Suffolk County |
$97,702,082 |
$424,522,100 |
$6,321,838,599 |
Sullivan County |
$4,169,193 |
$18,187,635 |
$271,146,274 |
Tioga County |
$1,356,216 |
$5,921,255 |
$88,296,199 |
Tompkins County |
$4,012,330 |
$17,581,577 |
$262,437,145 |
Ulster County |
$9,063,570 |
$39,372,873 |
$586,289,972 |
Warren County |
$3,105,096 |
$13,575,734 |
$202,516,268 |
Washington County |
$3,078,422 |
$13,309,617 |
$197,924,671 |
Wayne County |
$4,583,684 |
$19,846,094 |
$295,246,974 |
Westchester County |
$75,475,257 |
$330,486,136 |
$4,929,878,230 |
Wyoming County |
$1,616,979 |
$7,128,167 |
$106,578,316 |
Yates County |
$813,414 |
$3,575,315 |
$53,413,859 |
Regional Entities and Public Authorities |
$111,594,484 |
$510,462,019 |
$7,708,667,891 |
New York City |
$300,000,000 |
$1,800,000,000 |
$21,000,000,000 |
New York State |
$191,341,088 |
$874,488,150 |
$13,202,952,279 |
Grand Total |
$1,220,247,811 |
$5,877,629,031 |
$82,135,447,911 |