Union calls for changes to NYS Tier 6 pension plan

PLATTSBURGH | Over 100 area teachers with their families joined union leaders in solidarity at Trinity Park to deliver the message: Fix Tier 6. New York State United Teachers is leading a charge on a pension structure that they say is the root cause of state job vacancies and failing retention rates across New York State. Even in the rain, teachers gathered in the city park to share first-hand accounts of how retirement benefits have devolved into a system they decry is both unsustainable and untenable for their futures. Teachers and all state workers are assigned pension tier membership based on their hiring date. Calibration of benefits and contributions has changed drastically in the past decade. Jaime Ciffone, NYSUT vice president, said "We want to get more people into the classroom and into this loved profession. And the current retirement system is a deterrent to both joining and remaining in the profession of education and in all of our trades." NYSUT won some ground with state lawmakers, she said, as the state lowered the final salary calculation from an average of five years to three years for pension Tiers 5 and 6. NYSUT marked success in the first battle when "the number of years required to vest in the pension system for Tier 6 members was reduced from 10 years to five years — the same amount required for Tier 4." But that's not enough, the union says. Comparing pension benefits, in Tier 4 for example, a teacher can retire and collect a pension at age 55. The teacher's contribution caps at 3 percent and ends after 10 years from start of employment. Retirement at age 55 with 30 years on the job earns Tier 4 staff 60 percent of their Final Average Salary. With an FAS of $50,000, the pension is $30,000 per year. Tier 6 requires a teacher to work until age 63. Contributions to the fund increase and do not end at any time over the length of a career, amassing tens of thousands of dollars in contributions above Tier 4 or prior tier pension plans. If a Tier 6 teacher—or any state employee — retires at 55 with 30 years in, they receive 26.4 percent (less than half Tier 4) of the Final Average Salary. With an FAS of $50,000, the pension is $13,200. "It's about solidarity, it's about fairness," Ciffone said. "It's about dignity." TIER 6 WAS CRISIS RESPONSE Tier 5 and Tier 6 pension programs were implemented as a crisis response to the Great Recession under then-Gov. Andrew Cuomo. Tier 5 was put in place in 2010. Tier 6 was put in place in 2012. Father and son teachers, Scott Cutaiar and Andrew Cutaiar presented a multigenerational view. Scott, a Tier 4 employee, teaches at Beekmantown Central and leads the Teachers' Association; Andrew is Tier 5 and teaches at Saranac Central School. Comparing Tier 4 to Tier 6, Scott said, "is like comparing apples to asphalt." The Tier 6 structure was created in a crisis by financial panic, he said. "The crisis ended but the cuts never did. "Tiers 5 and 6 are now 60 percent of the public workforce in New York State," Scott said. "And those public employees have lower benefits, higher contributions and a longer work term." Saranac Lake teacher Dwight Stevenson said his Tier 6 pension option means he's paying into the fund at 4.5 percent after 10 years. As a father, he said, that 4.5 percent is about equal to the annual cost of daycare for one child. Lake Placid Central School District teacher Rhiannon Adsit pointed out that teachers and state workers fuel the economy. They don't tend to hoard money, she said. Instead, they buy houses and cars and household goods, take out loans, pay them back and keep commerce moving. To lawmakers, she asked: "Will you take care of us? Because we never stopped taking care of New York." NO INTEREST IN STATE JOBS Kim Hartshorn, a retired Plattsburgh State University theatre professor and member of the Northeast Central Labor Council, said the Tier 6 pension offer is a detriment to state employment offers. "It is not an incentive to work in the public sector," Hartshorn said, though for generations, state jobs here have provided some of the best opportunities in the North Country. "This was a covenant we entered into with New York State. The public sector is the biggest employer in the North Country, and the workers are its heart and soul." Some elected officials support the union's call to Fix Tier 6, including Assemblyman Billy Jones, who relayed that there is a lot of legislative motivation for revision, but they just have not been able to push that message through to next level review. City of Plattsburgh Mayor Wendell Hughes, who retired as a Tier 3 state employee, said retention value would be an important result of Tier 6 revision. "We do have to do this," Hughes said. "Together is how we get this done." Town of Plattsburgh Supervisor Michael Cashman said towns and villages, whether rural, suburban or urban, are struggling to attract and retain public servants. "This is not just a NYSUT issue. The impact of Tier 6 reaches far beyond one sector and affects professionals across all public service. The system is broken," Cashman said. "It hurts our police officers, our firefighters, our municipal workers, sanitation crews, public health professionals and so many others that dedicate their lives to serving our communities." Cashman said solidarity is central to their push for success. A Tier 4 member, he is advocating to improve the lives of Tier 6 compatriots, the future. "You are the lifeline of public service," he said. "Public servants deserve fairness, and they must act now to ensure they have it for the future." FIX TIER 6 RALLIES Saranac biology teacher and NYSUT District 9 and 10 Director Michele Bushey said residents across the state will see these rallies happen on the 6th of every month. "Are you ready?" she asked the crowd. "Are you ready to fix Tiers 5 and 6?" The crowd responded with a loud "Yes." NYSUT is taking the Fix Tier 6 message to residents in every region, urging support to address pension inequity. May 6 events are in New York City and on Long Island. June 6 events are set in the Mid-Hudson region and Elmira. To find out more about NYSUT's Fix Tier 6 initiative: fixtier6.org

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Union calls for changes to NYS Tier 6 pension plan

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