Paterson and Unions Agree on Plan; Say it Will Cut Jobs, Benefits, Save $440M
Per the announcement, the unions say they'll "support the Governor's efforts to implement the most significant reform of the state's pension system in more than a quarter century." That is, there'll be a whole new tier of pension plan -- Tier V -- that raises the retirement age from 55 to 62 and the years-of-service for pensioners from five to 10, demands a bigger employee pension kick-in,and caps discretionary overtime at $10,000 a year. If you haven't guessed, Tier V is for new employees.
Also, Paterson and the unions will cut about 7,000 jobs "through a targeted separation incentive, aggressive attrition and the elimination of positions that are funded but are currently vacant." And the unions will cooperate with a "Voluntary Reduction in Work Schedule."
The whole package is supposed to save $440 million over the next two years. This is the closest thing to a big win the Governor's had in a long while. We'll see if anyone notices.