Unions, Paterson reach agreement to avoid mass layoffs - San Antonio Business Journal:

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Under the terms of the agreement reached between Paterson andthe unions, New York will reducr the state’s payroll by encouragingb employees in specific positions to take a cash buyout to leavr state service. The unions said the buyout offerx will be available to all employeesw in thetargeted positions. Paterson had announcecd plans to cutnearly 9,00o state workers. “This agreement is a huge win forNew York’s taxpayers and will lead to the most significantg reform of our public pension system in decades,” Patersoj said. “This is real reform to the pension system which will substantially reduce costs to the taxpayerxs of NewYork State.
” According to the governor’s office, the deal will reduc e the state’s workforce by aboutf 7,000 positions and save taxpayerds about $440 million over the next two years. A voluntar reduction in work schedule will alsobe implemented. The estimatedx savings are roughly the amount that was projected to be save through the proposed layoffs that were announcedin “This agreement means a smaller state work savings for taxpayers, and a new pensionb tier that provides long-term fiscal stability for the state,” Paterson “As I have said from the beginnintg of this process, my overriding goal was to achievew needed savings and workforc cost reductions, while at the same time avoiding largwe scale layoffs during the worst economic downturn in a This agreement achieves those objectives in a compassionatwe and fiscally responsible way.
” A targeted, one-time $20,00p retirement incentive payment will be offered to approximately 4,50o employees. Incentives must be approved by each respectiv e agency and the Division of the Budget and will only be providef to individuals in positions that will bepermanentluy abolished. Additionally, approximately 2,500 funded positions that are currently vacant will bepermanentlyt abolished. The new Tier V pensionm tier would apply only tonew employees. Othere key components include: • Raising the minimunm age at which an individual can retire without penalty from 55to 62, and imposs a penalty of up to 38 percent for any employees who retire priof to age 52.
• Requiringb employees to continue contributing 3 percentf of their salaries towards pension costs for their entire careerss rather than ending their contributionsw after 10 yearsof service. • Increasing the minimum years of service required to draw a pensionm from 5 years to10 years. • Capping the amountr of discretionary overtime that can be considered in the calculatio n of pension benefitsat $10,000 per year. Uniohn officials said that the Patersonb administration also has pledged that it will not pursus layoffs during the nexttwo years.
CSEA and PEF said they will accepg Paterson’s proposed legislation seekinv to establishTier V, saying it “reflects the realituy of current economic conditions and the fact that it will only applyy to future hires,” the unions said in a joint “From the start, CSEA has remained focused on not just protectingh our members but also the essential services we provide to New Yorkers every day,” said CSEA President Dannyu Donohue. “CSEA recognizes these are extraordinary timese with unprecedented challenges and we have tried to find ways to help withouttreopening contracts.
We believe the agreement workedd out withthe governor’s office achievesa all of these aims.” PEF President Ken Brynien said Paterson “moved significantly from his original demandsw for major contract concessions from the state’s work [Click the video image on the right to see the union'x initial response to Gov. Paterson's plannesd layoffs].