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THE CHIEF-LEADER welcomes letters from its readers for publication. Ripple Effect in Pension Fix To The Editor: I have a suggestion that can help save some money in the short term for the city by accelerating the current attrition rate without the use of buyouts, while at the same time fixing a pension problem in Tier 4. Currently, the New York City Employees Retirement System says under its Tier 4 (62/5 "vested" plan) a member "can collect" a "reduced pension" starting at age 55 if you have five years of credited service and at least two years of membership serv- ice according to its early-retirement reduction chart. But, there is a catch, which is almost hidden and should be corrected. The catch is, you have to be on the city payroll, and at least the age of 44, to be able to file for a reduced pension. If you leave city service before attaining age 55, you become ineligible for this reduced pension plan. This even happens if a member has worked many years for the city with ample membership and credited service, and even if "any of those years" were in a "physically taxing job." New legislation should be made to correct this catch. Correcting it, I believe, would do at least the following two things: 1. Reduce the number of layoffs if they arise, by using the offset of workers who would take the "early out" ("reduced pension" payable at age 55). 2. Benefit those early-out workers who wish to leave before attaining age 55, but would otherwise feel compelled to stay because of the current catch. Note: The reduced retirement plan at age 55 is part of the 62/5 retirement plan. It therefore should also carry the same vesting rights.
What do you think about this matter? |
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