Pensions are one of the most expensive mandates for local governments. Pension costs were projected to increase from 2009 to 2015 by a of rate 185%. This rate was unsustainable.
With the historic passage of real pension reform, local governments will save over $80 billion over the next 30 years. Governor Cuomo’s pension reform plan prevents local governments from having to lay off local workers, cut vital government services or enact massive tax hikes to cover public pension costs.
The Governor’s plan creates a new Tier VI and progressive contribution rates for future state and local employees. No current employees will be affected by the Governor's pension reform plan.