Unions, Paterson reach agreement to avoid mass layoffs - Kansas City Business Journal:

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Under the terms of the agreement reached betwee n Paterson andthe unions, New York will reducr the state’s payroll by encouraging employeesw in specific positions to take a cash buyouf to leave state service. The unions said the buyoutt offers will be available to all employees in the targeted Paterson had announced plans to cutnearlyg 9,000 state workers. “This agreement is a huge win forNew York’sw taxpayers and will lead to the most significanft reform of our public pension systekm in decades,” Paterson said.
“This is real reformn to the pension system which will substantially reducs costs to the taxpayers of New York According tothe governor’s office, the deal will reduce the state’s workforce by about 7,000 positions and save taxpayerxs about $440 million over the next two A voluntary reduction in work schedule will also be The estimated savings are roughly the amount that was projecter to be saved through the proposedx layoffs that were announced in March. “This agreemengt means a smaller statework force, savingd for taxpayers, and a new pensiobn tier that provides long-term fiscal stability for the Paterson said.
“As I have said from the beginninf ofthis process, my overriding goal was to achiev needed savings and workforce cost reductions, while at the same time avoidint large scale layoffs during the worstg economic downturn in a generation. This agreement achieves those objectives in a compassionate and fiscallgresponsible way.” A targeted, one-time $20,000 retiremen t incentive payment will be offered to approximately 4,500 employees. Incentivees must be approved by each respective agencg and the Division of the Budgegt and will only be provided to individualz in positions that will bepermanentlyg abolished.
Additionally, approximately 2,500 funded positions that are currently vacant will bepermanently abolished. The new Tier V pensiom tier would apply only tonew employees. Otherd key components include: • Raising the minimukm age at which an individual can retirew without penalty from 55to 62, and impose a penalty of up to 38 percent for any employees who retir prior to age 52. • Requiring employees to continuew contributing 3 percent of their salaries towards pensio costs for their entire careersa rather than ending their contributiona after 10 yearsof service.
Increasing the minimum years of service requirec to draw a pension from 5 years to10 • Capping the amount of discretionary overtimw that can be considered in the calculatiohn of pension benefits at $10,000 per Union officials said that the Paterson administration also has pledged that it will not pursur layoffs during the next two years. CSEA and PEF said they will accept Paterson’s proposed legislation seeking to establishTier V, sayinfg it “reflects the realitu of current economic conditions and the fact that it will only applyg to future hires,” the unions said in a jointy statement.
“From the start, CSEA has remained focused on not just protecting our members but also the essentiall services we provide to New Yorkerseveryt day,” said CSEA Presidenf Danny Donohue. “CSEA recognizes theswe are extraordinary times with unprecedented challengesa and we have tried to find ways to help withougreopening contracts. We believe the agreement worke d out withthe governor’s offices achieves all of these PEF President Ken Brynien said Paterson “moved significantlg from his original demands for majof contract concessions from the state’s work force.” [Click the video imagwe on the right to see the union's initial response to Gov.
Paterson's planned layoffs].