Cuomo vows flexibility on pension reform
Gov. Andrew Cuomo indicated last week he would be flexible on pension reform as he received the backing of a group of more than two-dozen New York mayors and county executives.
Under a proposed Tier VI pension design with an optional 401(k)-style defined contribution plan that Cuomo presented along with his executive budget in January, the state could save as much as $113 billion over 30 years.
The changes would only impact future state employees.
Speaking to reporters Feb. 27 in Albany, Cuomo said the potential savings make this too important an issue to ignore.
“At the end of the day it”™s about the money, it”™s about the savings and where we get the savings; and our plan is about $113 billion in savings,” he said.
However, Comptroller Thomas DiNapoli has been a critic of the governor”™s proposal, citing concerns over the possible elimination of defined benefit pension plans in favor of 401(k) plans for state employees.
While Cuomo said he hasn”™t spoken with DiNapoli specifically about the proposed pension changes, he told reporters he would be flexible and work with the Legislature on any reforms.
“I”™m not saying that this is my plan (and) it”™s my way or the highway. Of course I”™m flexible. I”™m always flexible on every issue,” he said.
The comments coincided with the New York State Conference of Mayors and Municipal Officials Feb. 27 in Albany.
Several days prior, a coalition of elected officials from across the state spoke out in favor of Cuomo”™s proposed changes to the pension system.
Included among the group were Westchester County Executive Rob Astorino, Rockland County Executive C. Scott Vanderhoef, White Plains Mayor Thomas Roach, New Rochelle Mayor Noam Bramson and New York City Mayor Michael Bloomberg.
“Exploding pension costs are the single biggest threat to local government”™s ability to deliver needed services,” Astorino said in a statement. “The governor”™s proposal is a good first step toward delivering savings in the long-term.”
The coalition noted that annual pension costs to local governments statewide have increased from $1.7 billion in 2002 to $12.5 billion today.