Summary
Thousands of New York public workers held a rally in Albany, requesting changes to Tier 6 of the New York State and Local Retirement System. The current rules affect about 780,000 public employees and may be causing hiring challenges. Governor Kathy Hochul supports updating the pension plan for fairer terms to attract and retain public-sector workers like teachers, nurses, and firefighters.
Key Facts
- Tier 6 affects public workers hired in New York after April 1, 2012, including teachers, nurses, and firefighters.
- Workers under Tier 6 contribute 3-6% of their salary to pensions, with a full retirement age of 63.
- Some say Tier 6 makes it harder to hire and keep public workers, leading to overtime and burnout.
- Governor Kathy Hochul supports pension changes to improve recruitment.
- Proposed changes include basing benefits on the highest three years of salary and reducing vesting from 10 to 5 years.
- Critics are concerned changes could raise pension costs for governments and schools.
- 65% of firefighters are currently under Tier 6, highlighting differences with earlier tiers.
