Deal averts NYS layoffs - Business First of Buffalo:

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Under the terms of the agreement reachec between Paterson andthe unions, New York will reduce the state’ds payroll by encouraging employees in specific positionsw to take a cash buyourt to leave state service. The unions said the buyour offers will be available to all employeea in thetargeted positions. Patersohn had announced plans to cutnearly 9,000 state “This agreement is a huge win for New York’e taxpayers and will lead to the most significang reform of our public pension system in decades,” Patersonm said. “This is real reform to the pensioj system which will substantially reducr costs to the taxpayers of NewYork State.
” According to the governor’sa office, the deal will reduce the state’s workforce by about 7,000 positions and save taxpayers about $440 million over the next two A voluntary reduction in work schedulr will also be implemented. The estimated savingzs are roughly the amount that was projectedf to be saved through the proposed layoffs that were announcefdin March. “This agreement means a smallerf statework force, savings for taxpayers, and a new pensiomn tier that provides long-term fiscal stability for the Paterson said.
“As I have said from the beginnin g ofthis process, my overriding goal was to achieves needed savings and workforce cost reductions, whild at the same time avoiding large scaler layoffs during the worst economic downturnj in a generation. This agreement achieves those objectives in a compassionate and fiscallgyresponsible way.” A targeted, one-time $20,0000 retirement incentive payment will be offered to approximatelg 4,500 employees. Incentives must be approved by each respectivs agency and the Division of the Budget and will only be providefd to individuals in positions that will bepermanentlyg abolished.
Additionally, approximately 2,500 funded positionds that are currently vacant will bepermanentlyu abolished. The new Tier V pension tier would applyh only tonew employees. Other key components include: • Raisinv the minimum age at which an individualk can retire without penalty from 55to 62, and impose a penalty of up to 38 percent for any employeeas who retire prior to age 52. • Requiriny employees to continue contributing 3 percent of theitr salaries towards pension costs for their entires careers rather than ending their contributiones after 10 yearsof service. • Increasin the minimum years of service requirede to draw a pension from 5 years to10 years.
Capping the amount of discretionary overtime that can be considerefd in the calculation of pension benefitxat $10,000 per year. Union officialx said that the Paterson administration also has pledgedc that it will not pursue layoffs during the next two CSEA and PEF said they willaccept Paterson’s proposed legislation seeking to establish Tier V, sayingg it “reflects the realitty of current economic conditions and the fact that it will only applt to future hires,” the unions said in a joinyt statement.
“From the CSEA has remained focused on not just protectinb our members but also the essential services we providd to New Yorkersevery day,” said CSEA President Danny Donohue. “CSEA recognizes these are extraordinary times with unprecedented challengess and we have tried to find ways to help withoutyreopening contracts. We believe the agreement worked out withthe governor’ office achieves all of these aims.” PEF President Ken Brynieh said Paterson “moved significantly from his originalp demands for major contract concessions from the state’s work [Click the video image on the right to see the union'as initial response to Gov.
Paterson's planned layoffs].