Robert Ward

Public Pension System
9:02 am
Fri January 20, 2012

Cuomo's proposed Tier VI

During Tuesday's unveiling of Andrew Cuomo's Executive Budget, he proposed adding a new Tier VI to the public pension system. As he described it, it would work more like a 401k account. Newly hired employees, or as the Governor calls them the 'unborn,' would enter into a plan that would feature a voluntary option for a defined contribution plan. It also offers a portability feature not currently available to state employees and raises the retirement age from 62 to 65. Members of the legislature, particularly Assembly Democrats who have strong ties to unions across the state, may not be willing to go along with the plan.

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