Public Employee Press

Cuomo and Bloomberg call for pension cuts
Gov. Andrew Cuomo's Jan. 4 State of the State address and Mayor Michael Bloomberg's Jan. 12 State of the City speech echoed each other's demands to cut the pensions of public service employees - which they called "reform" - in a new Tier 6 plan.

Although the Tier 5 pension cuts for state workers and teachers took effect in 2010, Cuomo called for deeper cuts in June 2011 and again pushed for Tier 6 in his January message. In his budget proposal for the fiscal year beginning April 1, he repeated the call to shrink pensions and suggested letting employees replace the traditional pension with a 401(k) defined contribution plan.

Bloomberg admitted that "current city workers have earned their pensions," but - while his administration wastes billions on contracting out and fails to collect millions in available revenues - he claimed the city "cannot afford the same benefits for future workers."

"The governor and the mayor are following the example of the Republican governors who scapegoat public employees for their budget problems while they reduce taxes on business and the wealthy," said DC 37 Executive Director Lillian Roberts. "We have to be prepared to fight back."

The Tier 6 plan would increase the retirement age, raise the years of service required to get a pension, double workers' payments to 6 percent of their salary and continue the contributions (which now end after 10 years) until retirement.

"Passing these unfair changes may seem unrealistic to some, but the governor has tremendous power and we have to keep our guard up," said DC 37 Political Director Wanda Williams, calling on members to participate in the union lobbying days in March (see page 4) and May.

In his Albany speech, the governor also called for campaign finance reform, legalizing casino gambling and creating jobs by building the nation's largest convention center at the Aqueduct Racetrack in Queens and repairing the state's crumbling roads, bridges and parks.

Bloomberg's annual message called for individual merit pay increases for teachers and included several proposals that are contradicted by his real life behavior in office:

• He wants to increase the statewide minimum wage, but he has consistently opposed the "living wage" bill to raise pay on city funded projects.
• He claimed he would focus on improving education and creating jobs, but his administration laid off 642 low-paid, mainly minority, school support workers last year.
• He called for hospitals to help young people find careers, while he supported the Health and Hospitals Corp.'s plans to eliminate jobs and privatize laundry, dialysis and laboratory services.

—Alfredo Alvarado