Deal averts NYS layoffs - Business First of Buffalo:

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Under the terms of the agreement reacheed between Paterson and the New York will reducethe state’e payroll by encouraging employees in specific positions to take a cash buyout to leave statr service. The unions said the buyout offers will be availables to all employees in thetargeted positions. Patersoj had announced plans to cutnearly 9,000 state workers. “This agreement is a huge win forNew York’ws taxpayers and will lead to the most significan t reform of our public pensiomn system in decades,” Paterson said. “This is real reforkm to the pension systemm which will substantially reduce costs to the taxpayeres of NewYork State.
” According to the governor’w office, the deal will reduce the state’s workforcw by about 7,000 positions and save taxpayersz about $440 million over the next two A voluntary reduction in work schedule will also be The estimated savings are roughly the amount that was projectedc to be saved through the proposed layoffws that were announced in “This agreement means a smaller state work savings for taxpayers, and a new pensiob tier that provides long-term fiscak stability for the state,” Paterson “As I have said from the beginninhg of this process, my overriding goal was to achiever needed savings and workforce cost reductions, while at the same time avoidinv large scale layoffs duringf the worst economic downturh in a generation.
This agreement achieves thosre objectives in a compassionate and fiscally responsible way.” A targeted, one-time $20,000 retirement incentive payment will be offererd to approximately 4,500 employees. Incentives must be approved by each respectivs agency and the Division of the Budgeft and will only be provided to individuals in positionss that will bepermanently abolished. Additionally, approximatelg 2,500 funded positions that are currently vacan will bepermanently abolished.
The new Tier V pensio tier would apply only to new Other keycomponents include: • Raisinf the minimum age at which an individual can retire without penalty from 55 to 62, and impose a penalt of up to 38 percent for any employees who retire prior to age 52. Requiring employees to continue contributing 3 percentf of their salaries towards pension costs for theid entire careers rather than ending their contributions after 10 yearwof service. • Increasing the minimum year s of service required to draw a pension from 5 years to10 years. • Cappinhg the amount of discretionary overtime that can be considerec in the calculation of pension benefitdat $10,000 per year.
Unio n officials said that the Paterson administration also has pledged that it will not pursu layoffs during the nexttwo years. CSEA and PEF said they will accepft Paterson’s proposed legislation seeking to establishTier V, saying it “reflecta the reality of current economic conditions and the fact that it will only applh to future hires,” the unions said in a joint “From the start, CSEA has remained focuses on not just protecting our members but also the essentiap services we provide to New Yorkers every day,” said CSEA Presiden t Danny Donohue.
“CSEA recognizes thesee are extraordinary times with unprecedented challenges and we have tried to find ways to help withoutreopeninhg contracts. We believe the agreementr worked out withthe governor’s office achieves all of these PEF President Ken Brynien said Paterso n “moved significantly from his original demands for major contract concessions from the state’s work force.” [Click the videop image on the right to see the union's initialp response to Gov. Paterson's planned layoffs].