Reform New York’s Tier 6 pensions
As elected officials representing New York City and Rochester, we unite in a rallying cry for justice and dignity for our public service workers. We stand at a critical juncture, where the very fabric of our communities is threatened by the erosion of essential public services.
Since 2021, a staggering 16,858 employees have departed from state and public employment, leaving behind a void that imperils our safety, our education, and our collective well-being. This alarming exodus stems from a harsh reality: our newest public servants, the backbone and the future of our society, are being forced to choose between their livelihoods and their calling to serve.
The Tier 6 pension plan, now impacting a majority of members in our state and local retirement system, falls significantly short of meeting the modern-day needs of these hardworking individuals. The burden placed on public employees by Tier 6 is substantial, dissuading potential recruits, and contributing to declining staffing levels across all levels of government.
In comparison to previous tiers, Tier 6 provides inferior benefits, demands higher employee contribution rates, and sets a higher retirement age eligibility. These inadequacies have resulted in staffing shortages that directly impact vital services, from education to public safety to health care.
When parents worry about teacher shortages and school bus availability, when frontline workers face delays due to uncleared snow on local roads, and when communities experience disruptions in essential services, it becomes evident that action is imperative to rectify the obvious shortcomings of Tier 6.
Fixing Tier 6 isn’t just about rectifying a flawed retirement program; it’s about reaffirming our support for those who choose to dedicate their careers to public service. In doing so, we demonstrate our solidarity with the hardworking men and women who keep our state, counties, cities, towns, villages, and school districts running smoothly.
Enacted in 2012, during Gov. Andrew Cuomo’s tenure, Tier 6 brought significant changes to retirement benefits for newly hired public employees, particularly impacting educators and school-related professionals. Unlike previous tiers, Tier 6 mandates a retirement age of 63 with 40 years of service, diverging from the earlier option of retiring at 55 with 30 years of service.
This shift has led to dissatisfaction among public employees, highlighting notable differences in pension benefits, retirement age, contribution rates, and vesting requirements compared to earlier tiers.
While many public employees could potentially earn higher salaries in the private sector, we have traditionally had a strong public workforce because of the value our government employees place on public service, along with the guarantee of long-term financial security we have provided through our strong pension system. When our public employees do not feel valued, and the promise of financial security erodes, we predictably see fewer individuals interested in committing to careers in public service.
To address these inequities, legislative efforts supported by public employee advocates aim to secure fair retirement benefits. This includes standardizing contribution rates, reducing vesting time, and aligning multipliers with earlier tiers.
The goal is to extend benefits similar to those of Tier 4 to individuals in Tiers 5 and 6, with a primary focus on adjusting the calculation of the final average salary. Significant progress was made in 2022, with the reduction of vesting time for Tier 6 members to five years, aligning with Tier 4 requirements. This change, spearheaded by labor unions and our collective leadership, has vested more than 85,000 Tier 6 members in the retirement system. However, the need for parity between Tier 6 and Tier 4 benefits remains.
Therefore, we call on our colleagues in state and local governments to join us in championing reforms to Tier 6. It is imperative that we reduce the excessive contributions demanded of public workers, improve retirement benefit calculations, and lower the retirement age for these public sector employees.
By taking these steps, we can better attract and more importantly, retain qualified individuals in crucial government positions, ensuring the continued delivery of essential services to our communities. We can encourage individuals to not only work in public service but to pursue careers in public service.
Today, we stand at a pivotal moment, a juncture that calls for not just understanding, but action. Reforming Tier 6 is not just a matter of policy, it is a moral duty to uphold meaningful change. Let’s listen to the generations of public service workers who have a right to retire with dignity and not in poverty when they say, “Tier 6 sucks!”
We owe it to our state, and, most importantly, to the generations of public service workers who have dedicated their lives to the well-being of all New Yorkers. New York needs this pension reform now.
Jackson chairs the state Senate committee on Civil Services and Pensions and represents parts of Manhattan and the Bronx. Evans is mayor of Rochester.