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New York wants to cut state, city pensions for future retirees

While Pennsylvania, New Jersey, and Philadelphia struggle to keep their relatively generous pension plans current with fast-rising liabilities as investment values fall, New York has proposed cuts in future retiree's pensions and limits to eligibility.


New York Gov. David Paterson and NYC Mayor Michael R. Bloomberg are "proposing to reduce benefits for newly hired state and municipal workers, including those in New York City," reports the New York Times. " 'We’ve made too many promises and asked for too few sacrifices,' the governor said during an address to the Legislature.... One of the most controversial elements of the pension proposal would require the city’s police officers and firefighters to work 25 years and reach age 50 before they qualified for a full pension. At present, they can qualify for a full pension after 20 years of work, regardless of age... Workers in the state pension system would have to work until they were at least 62, instead of 55." Also, workers' pension payroll deductions would rise, though they'd still be less than in PA.

Times story here.