Top Unions Pushing: 25/55 Retirement Bill Before Pataki

Top Unions Pushing
25/55 Retirement Bill Before Pataki

By REUVEN BLAU

Thousands of veteran state and city workers are eagerly waiting to see if Governor Pataki signs into law an early retirement bill that would allow all civilian workers with 25 years of service who are 55 years old to retire with full benefits.

GOVERNOR PATAKI: Weighing early-out bill. Advocates of the measure, which was passed by the Senate and Assembly, contend it will help the state reduce future costs by creating a younger work force that is paid far less money. "This cost-effective early retirement incentive will instantaneously reduce payrolls and encourage an influx of younger public servants without impacting the delivery of public services," a memo attached to the legislation stated.

Two Chances to Leave

The bill would allot two 90-day periods over the next two years to allow eligible employees to retire at half pay without penalty. The open window periods would vary depending on where the workers are employed. Currently, most civilian workers must work for 30 years and be 62 years old before they can retire with full benefits.

The city unions strongly backing the bill include the United Federation of Teachers and District Council 37. Both the Civil Service Employees' Association and the Public Employees' Federation are also supporting the measure.

In all, there were six different early retirement bills that were proposed during the just-concluded legislative session in Albany. "I saw so many different incentive bills floating around this session, when someone asked me if they passed an incentive bill, I asked, 'which one?''' said a person familiar with the measures.

Governor Pataki submitted his own early-retirement bill to the Legislature that targeted specific employee groups. That measure, however, was tied to legislation expanding charter schools, which the Democratic-controlled Assembly opposed. The bill was never voted on in the Assembly.

A Boon to His Buddies?

PEF and CSEA contended that Mr. Pataki's legislation would have mainly benefited his friends in government. The unions successfully urged the Legislature to pass a more inclusive measure.

It is unclear where the Bloomberg administration stands on the issue. But one high-ranking city official seemed skeptical. "Early retirements in general are not the panaceas that people think they are," this official said.

Many veteran city workers wait until an incentive is offered to retire, the official pointed out. Other older employees who take advantage of the incentive were planning to retire anyway, he said.

No Incentives Offered

But the measure passed two weeks ago only reduces the age and years of service needed to retire without penalty and does not offer them an incentive, such as added service credit.

Previous incentives granted eligible employees an additional month of service credit for each year of work, up to a maximum of three additional years. The anticipated costs from such offers have been approximately 60 to 70 percent of the final average salary for each employee who elects to retire.

$11.5M Tag Next Year

According to the measure's fiscal note, it will cost the city a total of $11.5 million next year, with a $5.7 million outlay to the New York City Employees' Retirement System, a $4.6 million cost to the Teachers' Retirement System, and a $1.2 million expense to the Board of Education Retirement System.

The unions contend that it will eventually save the city money, because more veteran workers at top pay will retire and be replaced by employees who are paid far less money. Most new Teachers earn $41,172, while their veteran counterparts can receive as much as $90,000. Each year, the State Legislature passes a broad bill which gives every municipality the option of offering a retirement incentive plan to its workers should the locality deem the move necessary.

But the measure passed the previous week would require municipalities to allow eligible veteran employees to retire over specified periods. The bill may still be amended before it goes before Mr. Pataki, sources said.

The last early retirement incentive for city and state workers was offered in 2002 when they were facing severe budget cuts. The incentive has traditionally been used to avert layoffs.