After an all night negotiation, the Senate and Assembly on Wednesday, December 2, 2009 approved a $2.7 billion deficit reduction plan and created a new TIER 5 pension plan that will apply to future employees in the State Teachers' Retirement System and the Employees' Retirement System.
For State TRS, the minimum retirement age for employees hired after Jan. 1, 2010 will be 57, with 30 years of service without penalty. Members will be vested after 10 years of service (up from 5) and will contribute a lifetime 3.5 percent to their pensions. (current members contribute 3 percent for 10 years). They will receive the 2 percent final average salary calculation at 25 years. (up from 20)
Members of the State ERS hired after Jan. 1, 2010 will be eligible to retire with unreduced benefits at age 62 with 10 years of service or with reduced benefits upon the attainment of age 55 with 10 or more years of service. They will be required to contribute a lifetime 3 percent for their careers. (it currently is 3 percent for 10 years) and will receive vesting of benefits after 10 years of service. (up from 5)
In addition there will be changes in some of the retirement benefit structures for those hired after Jan. 1, 2010. We will post them as soon as we have the exact details.
This approved bill commits the legislation and the Governor to offer a 55/25 early retirement option for NYSUT members in the state TRS and ERS during a three month window in 2010. This program is expected to be available at employee election and not subject to employer authorization. Once the window has been established we will let our membership know.
Finally the agreement permanently protects retiree health insurance from being diminished unless in service members negotiate a reduction in their own health insurance as well. This is a huge gain in a tough year when many public and private sector retirees are seeing their health benefits slashed. Until now, we had to get a moratorium extension each and every year. Now our retirees are secure in knowing that future legislators or governors cannot wreak havoc on their benefits.
