WPCNR ALBANY ROUNDS. By John F. Bailey. July 21, 2010:
WPCNR has learned that New York Governor David Paterson, in an effort to slice the present 2010-11 budget deficit has offered present state workers a pension incentive if they would retire now.
State employees offered this deal have confirmed the offer.
The effect of the deal enables the Governor to clear payroll, slash the current 2010-11 budget, which is still being funded on a sporadic basis by a legislature which does not seem to be doing anything to pass a budget. The budget due to be approved April 1, three months and three weeks ago, is 112 days late. The legislature continues to fund expenditures "as needed," to keep the state functioning.
The Paterson deal to state employees eligible to retire is one month added to their pension calculation for every year of service if they retire now, essentially an 8% increase in their pension. If, for example you have been working for the state for 30 years, you would get an extra 2 years and six months service added to your pension calculation. Perhaps it would mean an 8% increase on a personís pension if they left now, according to rough estimates from our source.
The advantage to the state is to cut thousands of jobs now from the state payroll reducing the budget deficit,while jacking pensions out of the state pension funds. It also enables the new governor next year, one analyst said, to offer (refill) lots of jobs for an incoming administration.