How Will Pension Reform Impact Schools?
19 Mar, 2012
By Polly Kreisman
At the same time some of you have begun commenting on the Mamaroneck School District’s impasse with the Teachers union, an editorial in Newsday claims Governor Cuomo’s Tier 6 pension reform dosen’t go far enough.
It remains to be seen how this will impact teachers and schools in our area.
Gov. Andrew M. Cuomo’s hype machine went into overdrive late last week after the Legislature passed a scaled-back version of his Tier 6 pension reform plan.
Cuomo said the result was “bold and transformational . . . a historic win for New York taxpayers and municipalities.”
A more accurate description would have been “an incremental improvement on what we’ve got . . . and better than nothing.”
The bill creates a new public pension plan that’s roughly one-third less costly for employers than the Tier 5 plan adopted just over two years ago. The new plan achieves this mainly by shifting a larger share of pension costs to future employees, through an increase in contributions deducted from their paychecks.
Unions cried foul, but the benefit reduction for new workers will be slight.