Let everyone choose

Here is proof positive that reform of New York’s bloated public pension system can work to the benefit of taxpayers and civil servants alike: Of state workers given a choice, slightly more than half are volunteering for a lowercost 401(k)-style retirement plan instead of an old-fashioned pension, the Empire Center for Public Policy reports.

The employees get more flexibility and control. Taxpayers save money. What’s not to like?

This revealing experiment began two years ago, when Gov. Cuomo — responding to spiking pension costs — pushed through modest trims in retirement benefits for newly hired state and local government workers.

Included in the package was a “voluntary defined contribution” plan — similar to 401(k) plans that have become the norm in the private sector — as an optional alternative to a traditional pension.

The terms were more than generous: The state would chip in a flat 8% of a worker’s salary to a tax-protected investment account. The worker could contribute up to 6% more.

Yet union leaders blocked their members from even having the choice. The VDC was made available only to non-union employees with salaries of $75,000 or more hired after July 1, 2013.

Among this group, the program proved impressively popular.

Of 276 eligible state workers who joined the payroll over the past two years, the Empire Center says 140 opted for the 401(k)-style plan. That’s just over 50%.

Why is no great mystery. Traditional pension benefits take 10 years to vest, and a lot of younger workers can’t imagine tying themselves to one job for that long.

Among those preferring the flexibility and portability of the 401(k)-type plan are several new members of the Legislature.

If freedom of choice is good enough for them, how in good conscience can they deny the same to the average public employees who work for them?