Relates to the retirement contributions of career public employees

• Democratic3

◆ The sponsor's argument

Why Robert Jackson says this is needed

The state of New York, local governments and unable to hire or retain staff. This results negatively impacts the delivery of services, regu- lated entities and harms client care. While public service jobs have never been able to meet private sector salaries, the public defined benefit pension system served as an equalizer to attract and retain talent. Since the enactment of the inferior Tier 6 retirement plan, the state, local governments and school districts have struggled. The Tier 6 plan gutted the retirement benefits afforded to older public sector workers. Tier 6 undercuts career advancement through longevity and staff promotions by imposing higher contributions based on salary. It elimi- nated the 2%. benefit enhancement at 20 years that was used to reward longevity in public sector careers. It reduced the final average salary calculation from three years to five years. It greatly curtails the amount of overtime compensation that can be used for pensionable purposes despite the fact that employers are mandating or awarding over- time to meet staffing needs. The time has come to repair the Tier 6 retirement plan by reinstituting benefit enhancements based on career milestones for services rendered to the state and its residents. Th is legislation begins that process by reducing employee contributions for Tier 6 members. This; coupled with the new five year vesting change, will build new incentives into the plan to encourage new workers to enter into public service and help retain existing employees. This legislation would remove onerous and arbitrary reductions workers expe- rience based on the increased earning they accrue through promotions or negotiated salary increases.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.