As we come to the end of the 2011-16 contract that royally screwed State workers, our Governor has once again decided to balance his budget on the backs of his State workers. First, he has decided not to include any meaningful raises, without givebacks, for the next contract despite the State doing well financially. However, what's worse is what the Governor's budget do to State retirees who retire after October 1, 2016.
The Governor's budget wants to drastically reduce retiree health benefits for future retirees by including the following items that would save the State $12.4 million dollars in the next two years:
- Freeze reimbursement for the Medicare Part B premium at $105 per month and not the recently increased $122 monthly that Medicare Part B now costs. New State retirees would be responsible for the difference.
- Reduce payments for retirees with less than 30 years of service. At present the State pays 100% of all health coverage for pay grades 9 or lower and between 84% to 88% for pay grades 10 and higher for single workers and 69% to 73% for families. The Governor wants to reduce the entire workforce by the amount of years they worked under 30. The minimum vested employee (10 years) being 50% for individuals and 35% for families.
- Interestingly, the Governor would eliminate the prescription drug coverage fee for high income State retires making over $85,000 for single and $170,000 for families. I wonder if this is a favor to his people who work under him and make in excess of $100,000?
In other news there is a rumor floating around that the State will offer an early retirement incentive. However, according to Assemblyman Peter Abatte who is the go to politician on employee issues, there is no such bill and it was originally proposed three years ago and is not part of the Assembly's budget proposal this year. Moreover, for one to pass, it would need both the Governor's and the State Senate's approval and that's not likely.
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Cuomo would like to give us all "$15 an hour!", especially teachers. His voice is like PeeWee Herman's on steroids, (no offense PeeWee - I'd prefer you as governor, you're a much better actor).
ReplyDeleteNew Tiers??? or just plain across the board? Can it be done practically?
ReplyDeleteSadly, his late father NYS Governor, Mario Cuomo, is turning in his grave.
ReplyDeleteWhat about the TDA fixed rate changing to below 7%?
ReplyDeleteThe 7% is constitutionally protected, unless the Governor tries to pass a constitutional convention to change it and result in a decades long lawsuit before it would go into effect.
ReplyDeleteJIA LEE FOR UFT 2016!!
ReplyDeleteJIA LEE FOR FRAUD!
ReplyDeleteHow did they get away with lowering our TDA from 8 percent a couple of years ago? The Union let it happen.
ReplyDeleteHow is 7% protected? Then why wasnt 8.25& protected? There were no decades long lawsuits...
ReplyDeleteThe 7% is constitutionally protected as it cannot be diminished as by the State constitution and any change would result in a lawsuit. Just look at the recent Illinois Supreme Court decision.
ReplyDeleteThe union gave up the extra 1.25% in exchange for the two days before Labor Day.
Have you looked at the second TDA (the DOE one) that we could also put money in? They have lower percents and higher charges, and it doesn't look like they have a fixed rate. I max on our TDA and my IRA, is it worth to put money in that, too? Thanks.
ReplyDeleteThat extra 1.25% earned $1250.00 for every $100,000.00 you had in the TDA each year. So our genius union traded it for 2 easy days at the beginning of the school year?
ReplyDeleteI don't get it.
That 1.25% is worth hundreds of thousands of dollars over a career, depending of course upon how much you put in. What is the second DOE TDA, I havent heard of it?
ReplyDelete