With the grim state of the city budget a hot topic these days, questions are being raised about how long we can continue to sustain the heavy financial burden that comes from the city's pension system for municipal retirees. Last year the city paid out a total of 9% of its budget ($5.6 billion total) for its pensions and analysts project that percentage is only expected to rise. Former NYPD officer and current State Senator Martin Golden told the Post, "Everything's got to be explored...The bottom line is everything's on the table."
What Mayor Bloomberg and Governor Paterson would specifically like on the table is the "20-and-out" retirement plan for municipal workers. Bloomberg said, "Right now, we are paying full retirement benefits to people in their 40s. As people are living longer, we simply can't afford to do it forever." The more than 10,000 retired cops under the age of 50 represent 25% of the city's police-pension liability.
Some of the pension reforms the mayor and governor would like to see include:
- The minimum amount of service required for retirement raised from 20 to 25
- A minimum retirement age of 50
- 5% of their salaries contributing to their pension fund
- City workers paying more for health benefits
When Bloomberg suggested pension reform during the recent unveiling of his grim budget, labor unions sounded like they were ready to butt heads over any proposals. PBA President Patrick Lynch is already questioning assertions that cops and firemen live longer than other city workers saying it "defies logic" and that such a claim is only being made as an "attempt to cheapen pension benefits for future police officers."
And while on a pension kick today, the Post also points out that one of the largest pensions currently being dished out by the state is for public librarians—only doctors and attorneys are collecting more.
