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Andrew M. Cuomo - Governor

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

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Albany, NY (January 25, 2013)

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):

 

    City
FY 2014 5 Yr Total
    City Of Albany
$8.3 $29.9
    City Of Amsterdam
$1.0 $3.7
    City Of Auburn
$1.8 $6.5
    City Of Batavia
$0.9 $3.1
    City Of Beacon
$0.8 $2.8
    City Of Binghamton
$3.4 $12.2
    City Of Buffalo
$19.2 $69.4
    City Of Canandaigua
$0.6 $2.2
    City Of Cohoes
$0.9 $3.2
    City Of Corning
$0.5 $2.0
    City Of Cortland
$1.0 $3.5
    City Of Dunkirk
$0.9 $3.4
    City Of Elmira
$1.7 $6.3
    City Of Fulton
$1.0 $3.6
    City Of Geneva
$0.9 $3.1
    City Of Glen Cove
$1.7 $6.1
    City Of Glens Falls
$1.0 $3.4
    City Of Gloversville
$0.8 $2.9
    City Of Hornell
$0.5 $2.0
    City Of Hudson
$0.4 $1.6
    City Of Ithaca
$2.6 $9.3
    City Of Jamestown
$2.3 $8.1
    City Of Johnstown
$0.5 $1.7
    City Of Kingston
$1.8 $6.5
    City Of Lackawanna
$1.1 $4.0
    City Of Little Falls
$0.3 $1.1
    City Of Lockport
$1.5 $5.3
    City Of Long Beach
$3.4 $12.3
    City Of Mechanicville
$0.2 $0.7
    City Of Middletown
$1.7 $5.9
    City Of Mount Vernon
$5.5 $19.7
    City Of New Rochelle
$5.4 $19.4
    City Of Newburgh
$1.9 $7.0
    City Of Niagara Falls
$3.9 $14.3
    City Of North Tonawanda
$1.7 $6.1
    City Of Norwich
$0.4 $1.6
    City Of Ogdensburg
$0.8 $2.7
    City Of Olean
$0.9 $3.3
    City Of Oneida
$0.7 $2.5
    City Of Oneonta
$0.7 $2.5
    City Of Oswego
$1.5 $5.5
    City Of Peekskill
$2.0 $7.1
    City Of Plattsburgh
$1.4 $4.9
    City Of Port Jervis
$0.6 $2.1
    City Of Poughkeepsie
$2.7 $9.7
    City Of Rensselaer
$0.6 $2.0
    City Of Rochester
$21.2 $76.4
    City Of Rome
$2.0 $7.3
    City Of Rye
$1.3 $4.6
    City Of Salamanca
$0.4 $1.3
    City Of Saratoga Springs
$2.0 $7.2
    City Of Schenectady
$3.7 $13.3
    City Of Sherrill
$0.2 $0.5
    City Of Syracuse
$12.0 $43.5
    City Of Tonawanda
$0.8 $3.1
    City Of Troy
$3.3 $11.9
    City Of Utica
$3.5 $12.6
    City Of Watertown
$1.9 $7.0
    City Of Watervliet
$0.7 $2.4
    City Of White Plains
$8.0 $28.6
    City Of Yonkers
$21.4 $77.6

 

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

 

    County
FY 2014 5 Yr Total
    Albany County
$10.2 $35.6
    Allegany County
$2.1 $7.1
    Broome County
$8.9 $30.8
    Cattaraugus County
$4.5 $15.7
    Cayuga County
$3.4 $11.9
    Chautauqua County
$5.6 $19.4
    Chemung County
$4.1 $14.4
    Chenango County
$2.0 $6.8
    Clinton County
$4.0 $13.8
    Columbia County
$4.0 $13.9
    Cortland County
$2.2 $7.7
    Delaware County
$2.1 $7.1
    Dutchess County
$11.4 $39.6
    Erie County
$23.5 $81.6
    Essex County
$2.2 $7.5
    Franklin County
$2.1 $7.2
    Fulton County
$2.6 $8.9
    Genesee County
$3.3 $11.6
    Greene County
$2.1 $7.3
    Hamilton County
$0.5 $1.6
    Herkimer County
$1.9 $6.7
    Jefferson County
$3.9 $13.5
    Lewis County
$3.8 $13.3
    Livingston County
$3.9 $13.5
    Madison County
$2.3 $7.9
    Monroe County
$22.5 $78.2
    Montgomery County
$1.5 $5.2
    Nassau County
$88.9 $317.3
    Niagara County
$6.8 $23.6
    Oneida County
$7.1 $24.7
    Onondaga County
$20.5 $71.2
    Ontario County
$5.3 $18.6
    Orange County
$14.7 $51.2
    Orleans County
$1.9 $6.5
    Oswego County
$4.1 $14.2
    Otsego County
$2.3 $8.0
    Putnam County
$3.9 $13.6
    Rensselaer County
$8.5 $29.4
    Rockland County
$16.7 $58.2
    Saratoga County
$6.3 $21.8
    Schenectady County
$6.4 $22.3
    Schoharie County
$1.6 $5.6
    Schuyler County
$0.9 $3.2
    Seneca County
$1.7 $6.1
    St Lawrence County
$3.7 $13.0
    Steuben County
$4.2 $14.4
    Suffolk County
$97.5 $348.0
    Sullivan County
$4.8 $16.6
    Tioga County
$1.6 $5.7
    Tompkins County
$4.0 $13.9
    Ulster County
$8.8 $30.6
    Warren County
$3.8 $13.1
    Washington County
$2.8 $9.7
    Wayne County
$4.2 $14.5
    Westchester County
$40.1 $140.3
    Wyoming County
$3.3 $11.3
    Yates County
$1.1 $3.8

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