Across New York, officials are raising concerns about a union-backed initiative that proposes allowing government employees hired after 2012 to retire at age 55 rather than 63, part of a $1.5 billion pension package.
Politicians from various cities, counties, towns, and villages have expressed strong opposition to this costly taxpayer-funded reform. They insist that if the measure is approved, the financial burden should fall on Albany, not their local budgets, avoiding an unfunded mandate.
Paul Feiner, the supervisor of Greenburgh in affluent Westchester County, stated, “If the state decides to pursue this, it should be responsible for covering any additional expenses placed on local governments.”
He emphasized, “Every single cost should be covered by the state, not passed down to local governments or school districts,” referring to the proposal, which also aims to reduce the contribution rates for certain employees.
“No one wants significant tax hikes. It’s crucial to keep living costs manageable here,” Feiner added.
The Conference of Mayors, along with the Association of Counties and the Association of Towns, issued a unified statement: “Our stance is clear: if New York State opts to modify Tier 6, it must bear the full financial responsibility for these changes.”
“Counties, cities, towns, and villages already operate under severe fiscal constraints — the property tax cap, rising costs for essential services, and the growing burden of unfunded state mandates,” the group said.
“Any increase in employer pension contribution rates resulting from Tier 6 amendments would force local governments to make impossible choices: cutting essential services, eliminating positions, or seeking property tax increases that local taxpayers cannot afford.”
Former Gov. Andrew Cuomo established the Tier 6 pension plan in 2012 — changing the requirements for different groups of unionized government workers — to rein in costly pension burdens on state and local governments. Union leaders have been fighting to undo or dramatically scale back Tier 6 ever since.
While running for New York City mayor, Cuomo, then seeking union support, said he would consider lobbying to relax the pension tightening he approved.
Gov. Kathy Hochul, Cuomo’s successor, confirmed she’s in negotiations with labor leaders as part of state budget talks to bring more parity to workers enrolled in Tier 6 with veteran employees whose pensions are more generous.
“Tier 6 is on the table. We’ve been requested to look at it by the unions to right some of the wrongs of the past,” Hochul told reporters after an event last week.
But the current proposed plan would leave municipalities and school districts with $1.2 billion in new costs, according to a copy of a proposal being floated by the unions and obtained by The Post.
That amounts to a $328 million bill just for New York City alone.
Hochul is negotiating the deal at a time when New York’s largest cities are under fiscal pressure. The Big Apple faces a projected $5.4 billion deficit.
But New York City Mayor Zohran Mamdani said he’s open to the pension sweetener while he pushes for other assistance from Albany.
“I’ve long said that I think there need to be changes to Tier 6 because we need to make it as easy as possible for New Yorkers to enter a life of public service,” said Mamdani, a former state assemblyman.
“We believe we can do these kinds of things … in tandem with everything else that we’re pursuing in Albany, which also means putting our city back on firm financial footing.”
Under the proposal being floated, state municipalities outside of New York City could end up being saddled with a total of $407 million in costs for the pension boost. School districts, which are in a different pension system, would see an additional $480 million in costs.
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Local governments also must contribute more to cover employee pensions if investment returns generated underperform, such as during a downturn or bear market.
Feiner, a Democrat who has been the Greenburgh Town supervisor for 35 years, said he’s disappointed that local officials have not been consulted on such a a significant change that could impact the bottom line of municipal budgets.
Nassau County Executive Bruce Blakeman, the Republican nominee for governor, issued a measured statement when asked about the proposed pension change, saying it should be subject to contract negotiations between unions and local elected officials.
“Tier 6 is a complicated issue that should be part of the collective bargaining process. As Nassau County Executive, I have had four years of labor peace without raising taxes. As governor, I will strike the same balance between fair wages and benefits for our workers while protecting our taxpayers,” Blakeman said in a statement.
Thousands of union members, including those with the United Federation of Teachers, attended a rally in Albany last month demanding better pensions.
A similar rally was held by law-enforcement unions on Long Island last week.
