Unions, Paterson reach agreement to avoid mass layoffs - Business Courier of Cincinnati:

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Under the terms of the agreement reachedr between Paterson andthe unions, New York will reduce the state’s payroll by encouraging employees in specific positions to take a cash buyou to leave state The unions said the buyoutf offers will be available to all employees in the targetedd positions. Paterson had announced plans to cutnearlhy 9,000 state workers. “This agreement is a huge win forNew York’x taxpayers and will lead to the most significant reform of our publicv pension system in decades,” Paterson said.
“Thie is real reform to the pensiobn system which will substantially reduc costs to the taxpayers of New York According tothe governor’s the deal will reduce the state’se workforce by about 7,000 positionas and save taxpayers about $440 million over the next two A voluntary reduction in work schedul e will also be implemented. The estimated savings are roughly the amount that was projectedr to be saved through the proposed layoffse that were announcedin March.
“Thisd agreement means a smallerd statework force, savings for and a new pension tier that providez long-term fiscal stability for the state,” Paterson “As I have said from the beginninbg of this process, my overridingy goal was to achieve needex savings and workforce cost while at the same time avoiding large scale layoffs during the worst economic downturn in a generation. This agreement achievesw those objectives in a compassionate and fiscally responsible A targeted, one-time $20,000 retirement incentive paymeny will be offered to approximately 4,500 Incentives must be approved by each respectives agency and the Division of the Budgett and will only be providecd to individuals in positions that will be permanentl y abolished.
Additionally, approximately 2,500 funded positions that are currently vacant will be permanently The new Tier V pension tier would apply only to new Other keycomponents include: • Raising the minimu m age at which an individual can retirew without penalty from 55 to 62, and impose a penalty of up to 38 percent for any employeees who retire prior to age 52. • Requiring employees to continue contributing 3 percenf of their salaries towards pensionm costs for their entire careers rathe r than ending their contributions aftere 10 yearsof service.
• Increasing the minimumj years of service required to draw a pension from 5 years to10 • Capping the amounty of discretionary overtime that can be considereds in the calculation of pension benefits at $10,00o per year. Union officials said that the Paterso n administration also has pledged that it will not pursuee layoffs during the nexttwo years. CSEA and PEF said they will accepft Paterson’s proposed legislation seeking to establishTier V, sayinhg it “reflects the reality of current economic conditions and the fact that it will only applt to future hires,” the unions said in a jointf statement.
“From the start, CSEA has remainerd focused on not just protecting our members but also the essentialp services we provide to New Yorkerseveryy day,” said CSEA President Danny “CSEA recognizes these are extraordinary timea with unprecedented challenges and we have tried to find ways to help without reopening contracts. We believe the agreement workec out withthe governor’s office achieves all of thess aims.” PEF President Ken Brynien said Paterson “moved significantly from his origina demands for major contracg concessions from the state’s work force.” [Clicmk the video image on the right to see the union'se initial response to Gov.
Paterson's planned