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Maybe you should worry more about residents having to pay more in taxes in 2012 for an underfunded pension system
I've read in several places that NY's pension is fully funded, it's received the highest rating among state funded pensions in the US. I've also recently read that when different accounting rules are applied (from the private sector, not entirely applicable to the state sector) then it looks underfunded. A big part of the difference seems to be in how you apply funding for certain liabilities.
In any case, pension costs are increasing, and taxes must be raised, other services cut, or the plan restructured. I would agree the fairest way right now would be to restructure the plan with limited tax hikes (I like the millionaire's tax. I'm not paying it, but then again I don't have nearly the means to make wealth through investment. It seems somewhat fair in this climate). I would not say the pension system is broken, but can definitely be bettered. Some of us are just arguing parts of the proposal aren't equitable, rather than better them (state employees) than us (tax payers). I see your argument that it's more preferential to shift those costs off of taxpayers than to promise future workers who have yet to be hired, and I mostly agree there. I just think there may be a better solution to the inequity in benefit and take-home pay. I don't know that current employees or pensions should be beyond adjustment considering the cost, or that being on either side of a hiring date should so dramatically affect your benefits and take-home pay.
I've read in several places that NY's pension is fully funded, it's received the highest rating among state funded pensions in the US. I've also recently read that when different accounting rules are applied (from the private sector, not entirely applicable to the state sector) then it looks underfunded. A big part of the difference seems to be in how you apply funding for certain liabilities.
In any case, pension costs are increasing, and taxes must be raised, other services cut, or the plan restructured. I would agree the fairest way right now would be to restructure the plan with limited tax hikes (I like the millionaire's tax. I'm not paying it, but then again I don't have nearly the means to make wealth through investment. It seems somewhat fair in this climate). I would not say the pension system is broken, but can definitely be bettered. Some of us are just arguing parts of the proposal aren't equitable, rather than better them (state employees) than us (tax payers). I see your argument that it's more preferential to shift those costs off of taxpayers than to promise future workers who have yet to be hired, and I mostly agree there. I just think there may be a better solution to the inequity in benefit and take-home pay. I don't know that current employees or pensions should be beyond adjustment considering the cost, or that being on either side of a hiring date should so dramatically affect your benefits and take-home pay.
The statement "the pension system is fully funded" is a meaningless term, true that NY is in better shape than most states but that is because of tax increases. If it is fully funded why the increases, the pension system relies greatly on returns from around 80% of it's assets, decreasing their assets means less to invest. I think investment returns account for around 80% of returns, even a small decrease in capital is significant. This is going to be the status quo for several years.
"Gov. Cuomo drew a line in the sand, saying he’s willing to force the Legislature to choose between enacting pension reform as part of the budget or shutting down government.
“There must be pension reform in the budget,” Cuomo said.
If the Legislature does not act by the March 31 budget deadline, Cuomo said he’s willing to place a pension reform plan into a take-it-or-leave-it budget extender.
The onus would then be on lawmakers to pass the extender or not.
"Am I willing to go extenders? Yes,” Cuomo said. “But they would have to shut it down, not me"
I never understood the concept of the "unborn". No one is owed these jobs. If they don't like the package offered at the time of hire, they don't have to take the job. Even if all of these changes passed, most state/city/municipality jobs in NYS will be highly competitive as far as pay and benefits go.
For entry-level workers, yes. For skilled professionals, the state already has an incredibly tough time recruiting. I don't see this sweetening the pot any.
For entry-level workers, yes. For skilled professionals, the state already has an incredibly tough time recruiting. I don't see this sweetening the pot any.
I don't see any jobs on the NYS website, entry level or experienced, what skilled positions are they trying to recruit. I am kind of surprised that they are even recruiting with all the layoffs.
I tend to agree with the mayor of White Plains, borrowing to pay pension costs is a big mistake. Pension reform won't help today, but will put us on solid footing for the future.
"Cuomo has said pension costs will consume 35 percent of local-government budgets by 2015, up from 3 percent in 2001. " ‘Road to Hell’
“The road to hell is paved in amortizing pensions,” said Thomas Roach, mayor of White Plains, a city of 70,000 and the county seat of Westchester, which borders New York City. “All you’re doing is taking a current operating cost and pushing it down the line.”
DiNapoli pushed the amortizing plan at a meeting of the New York State Conference of Mayors and Municipal Officials in Albany on Feb. 27, saying it has “many advantages from a cash-flow basis.” Unlike Cuomo’s plan, he said it gives “you help right now, not 30 years from now.”
I tend to agree with the mayor of White Plains, borrowing to pay pension costs is a big mistake. Pension reform won't help today, but will put us on solid footing for the future.
"Cuomo has said pension costs will consume 35 percent of local-government budgets by 2015, up from 3 percent in 2001. " ‘Road to Hell’
“The road to hell is paved in amortizing pensions,” said Thomas Roach, mayor of White Plains, a city of 70,000 and the county seat of Westchester, which borders New York City. “All you’re doing is taking a current operating cost and pushing it down the line.”
DiNapoli pushed the amortizing plan at a meeting of the New York State Conference of Mayors and Municipal Officials in Albany on Feb. 27, saying it has “many advantages from a cash-flow basis.” Unlike Cuomo’s plan, he said it gives “you help right now, not 30 years from now.”
"Cuomo has said pension costs will consume 35 percent of local-government budgets by 2015, up from 3 percent in 2001."
OMG!
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