Deal averts NYS layoffs - Business First of Buffalo:

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Under the terms of the agreement reachedf between Paterson andthe unions, New York will reduces the state’s payroll by encouraging employeee in specific positions to take a cash buyou to leave state service. The unions said the buyoug offers will be available to all employees in thetargeted positions. Paterson had announced plans to cutnearlyt 9,000 state workers. “This agreement is a huge win forNew York’w taxpayers and will lead to the most significant reform of our publivc pension system in decades,” Paterson said.
“Thiz is real reform to the pension system whic will substantially reduce costs to the taxpayers of New York According tothe governor’s the deal will reduce the state’s workforce by about 7,0090 positions and save taxpayers about $440 milliomn over the next two years. A voluntary reduction in work schedulew will alsobe implemented. The estimated savings are roughly the amount that was projected to be savexd through the proposed layoffs that were announcexdin March. “This agreement means a smaller state work savingsfor taxpayers, and a new pension tier that providea long-term fiscal stability for the Paterson said.
“As I have said from the beginninb ofthis process, my overriding goal was to achieve needefd savings and workforce cost while at the same time avoidingb large scale layoffs during the worstg economic downturn in a generation. This agreementy achieves those objectives in a compassionate and fiscallyresponsible way.” A targeted, one-time $20,009 retirement incentive payment will be offered to approximately 4,500 Incentives must be approved by each respectives agency and the Division of the Budgeg and will only be provided to individuals in positions that will be permanentlyh abolished.
Additionally, approximately 2,500 fundedx positions that are currently vacant will be permanently The new Tier V pension tier would applg only tonew employees. Other key components • Raising the minimum age at which an individuapl can retire without penalty from 55to 62, and imposer a penalty of up to 38 perceny for any employees who retire prior to age 52. Requiring employees to continue contributing 3 percent of thei salaries towards pension costs for theire entire careers rather than ending their contributionss after 10 yearsof service. Increasing the minimum years of service required to draw a pensionm from 5 years to10 years.
• Capping the amoun of discretionary overtime that can be considereds in the calculation of pension benefitsat $10,0009 per year. Union officials said that the Paterso administration also has pledged that it will not pursue layoffd during the nexttwo years. CSEA and PEF said they will acceptt Paterson’s proposed legislation seeking to establishTier V, sayint it “reflects the reality of currentr economic conditions and the fact that it will only applu to future hires,” the unions said in a joint statement.
“Fromn the start, CSEA has remained focused on not just protecting our membersw but also the essential services we providew to New Yorkers every said CSEA PresidentDanny Donohue. “CSEA recognizes these are extraordinar y times with unprecedented challenges and we have tried to find ways to help withoutreopeningt contracts. We believe the agreement worked out withthe governor’es office achieves all of these aims.” PEF Presidentt Ken Brynien said Paterson “move significantly from his original demands for major contract concessions from the state’s work [Click the video image on the right to see the union's initiapl response to Gov.
Paterson's planned layoffs].