January 25, 2013
Albany, NY

Budget Division Releases Potential 5-Year Savings for Counties and Localities Under Stable Rate Pension Contribution Option

TOP Budget Division Releases Potential 5-Year...

Governor Andrew M. Cuomo today detailed the potential savings over the next five years for counties and cities across New York State that could be realized under the Stable Rate Pension Contribution Option.


Last year, Governor Cuomo and the Legislature put in place Tier VI, a new pension plan for all state and local government employees hired after June 2012. With employees hired under Tier VI requiring a lower pension contribution rate by local governments, as new employees replace retiring workers, localities will see total pension contribution rates significantly decline and realize significant savings over the long-term.


The Stable Rate Pension Contribution Option, outlined by the Governor in the 2013-14 Executive Budget, allows local governments, including counties, cities, towns, villages, and school districts to access the savings of Tier VI immediately. Under the plan, localities are given the option for a stable pension contribution rate that significantly reduces near-term payments but still keeps the pension systems fully funded over the long term. Local governments who opt in would avoid significant volatility in contribution rates and be better able to plan for the future. Though the locality receives short term relief, because the contribution rate remains fixed, the total amount paid in to the fund by the locality would not be diminished over the life of agreement, thereby maintaining the fiscal stability of the pension fund. These savings will better enable local governments and school districts to maintain necessary services to their residents and students. The option is voluntary and requires approval from the appropriate trustee - either the Comptroller's office or Teachers' Retirement Board.


"The difficult financial pressures facing localities are well-known here in Albany, and my administration from day one has been committed to helping local governments meet their budgetary obligations as well as continue to provide critical services to their residents," Governor Cuomo said. "While the Tier VI reforms were a major step toward helping local governments deal with the pension crisis, we understand that more help is needed. For this reason, the Executive Budget proposed the Stable Rate option to offer local governments and schools a bridge to the long-term savings of Tier VI, as well as greater predictability."


The estimated savings are as follows for Cities (numbers in millions):


FY 20145 Yr Total
    City Of Albany
    City Of Amsterdam
    City Of Auburn
    City Of Batavia
    City Of Beacon
    City Of Binghamton
    City Of Buffalo
    City Of Canandaigua
    City Of Cohoes
    City Of Corning
    City Of Cortland
    City Of Dunkirk
    City Of Elmira
    City Of Fulton
    City Of Geneva
    City Of Glen Cove
    City Of Glens Falls
    City Of Gloversville
    City Of Hornell
    City Of Hudson
    City Of Ithaca
    City Of Jamestown
    City Of Johnstown
    City Of Kingston
    City Of Lackawanna
    City Of Little Falls
    City Of Lockport
    City Of Long Beach
    City Of Mechanicville
    City Of Middletown
    City Of Mount Vernon
    City Of New Rochelle
    City Of Newburgh
    City Of Niagara Falls
    City Of North Tonawanda
    City Of Norwich
    City Of Ogdensburg
    City Of Olean
    City Of Oneida
    City Of Oneonta
    City Of Oswego
    City Of Peekskill
    City Of Plattsburgh
    City Of Port Jervis
    City Of Poughkeepsie
    City Of Rensselaer
    City Of Rochester
    City Of Rome
    City Of Rye
    City Of Salamanca
    City Of Saratoga Springs
    City Of Schenectady
    City Of Sherrill
    City Of Syracuse
    City Of Tonawanda
    City Of Troy
    City Of Utica
    City Of Watertown
    City Of Watervliet
    City Of White Plains
    City Of Yonkers


The estimated savings are as follows for Counties (numbers in millions):


FY 20145 Yr Total
    Albany County
    Allegany County
    Broome County
    Cattaraugus County
    Cayuga County
    Chautauqua County
    Chemung County
    Chenango County
    Clinton County
    Columbia County
    Cortland County
    Delaware County
    Dutchess County
    Erie County
    Essex County
    Franklin County
    Fulton County
    Genesee County
    Greene County
    Hamilton County
    Herkimer County
    Jefferson County
    Lewis County
    Livingston County
    Madison County
    Monroe County
    Montgomery County
    Nassau County
    Niagara County
    Oneida County
    Onondaga County
    Ontario County
    Orange County
    Orleans County
    Oswego County
    Otsego County
    Putnam County
    Rensselaer County
    Rockland County
    Saratoga County
    Schenectady County
    Schoharie County
    Schuyler County
    Seneca County
    St Lawrence County
    Steuben County
    Suffolk County
    Sullivan County
    Tioga County
    Tompkins County
    Ulster County
    Warren County
    Washington County
    Wayne County
    Westchester County
    Wyoming County
    Yates County