Spitzer Cuts Contribution
CUNY, SUNY Profs Get Pension Break

By MEREDITH KOLODNER

Governor Spitzer's signature on a pension relief bill will mean that veteran instructors at the City and State Universities of New York will see an effective 3-percent increase in their take-home pay.

BARBARA BOWEN: 'Gives us pension equity.'

Declaring victory in a battle begun six years ago, unions representing professors credited a lobbying campaign that convinced legislators that the measure was needed to give university employees parity with city workers in other retirement systems who were granted the same pension relief in 2000. The measure would apply to instructors with more than 10 years in the system who are enrolled in the Optional Retirement Program and would eliminate their contribution of 3 percent of salary toward their pensions.

'An Important Statement'

"This was a very important statement of support by the Governor and the Legislature for pension equity," said Professional Staff Congress President Barbara Bowen, "and for making sure higher-education employees don't get treated less well than other employees."

The PSC initiated the legislation and lobbied as part of a coalition with the New York State United Teachers, which represents SUNY Professors. Members also sent thousands of messages to Albany urging the Governor to sign the bill.

PSC officials estimated that more than 2,400 CUNY and 8,700 SUNY Professors will be affected. The benefit will be phased in over three years and will cost the state about $2 million next year, eventually rising to $8 million annually.

In 2000, the State Legislature passed the Enhanced Benefit Law, which eliminated the 3-percent payment for workers in Tiers 3 and 4 of most state retirement systems.

ORP Members Shut Out

CUNY instructors who had previously chosen to be in the Teachers Retirement System became eligible for that benefit. But about 75 to 80 percent of CUNY instructors (most of whom are invested in TIAA-CREF) choose the Optional Retirement Plan, which was designed specifically for academics and people working in higher education. The plan is portable and can be carried between institutions, which benefits Professors who often change universities, whether they are entering or leaving the CUNY system.

The choice of a pension plan is irrevocable, so although the relief was granted to CUNY instructors in TRS, their colleagues who opted for TIAA-CREF have not received the same benefit for the past seven years.

A similar bill made it through the Legislature last year but was vetoed by then-Governor Pataki.

"We feel that this is also an investment in quality higher education," said Ms. Bowen, "because it helps to make CUNY and SUNY faculty positions competitive, and that improves education for everyone."