Source: Dan Burns, Joan Gralla, Daniel Trotta and Leslie Adler / Reuters
New York state lawmakers have approved a pension reform measure aimed at saving $80 billion over 30 years by reducing benefits for newly hired state and local public workers.
Governor Andrew Cuomo praised the bill, which was enacted by the legislature late Wednesday, as key to maintaining the state’s fiscal health. The bill also provides a safeguard for municipalities that will protect them from any financial burden if pension benefits are increased.
Spiraling pension obligations are one of the top financial problems faced by state and local governments across the United States.
The New York law reduces retiree benefits for future state and local government workers, increases retirement plan contributions by higher-earning public employees, and raises the retirement age by a year to 63. It also reduces how much overtime can be used to calculate pension benefits.
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