Did you know that the Central States Pension Fund pays out $3.46 for every dollar it brings in? When Pension funds dish out $2 billion more than it’s bringing in annually, retiree benefits can be cut by up to 60% when the money dries up. Thankfully, New York State’s leading advocate for public employee pension program reform, Assemblyman Fitzpatrick (R,C,I-Smithtown), has submitted legislation that can protect the retirement plans of all State workers.
“The Central States Pension Fund, which represents over 400,000 unionized workers, currently finds itself in a situation where the fund is drying up and it must now slash benefits to retirees. New York State could find itself in a similar state with its pension program in the near future… Pension funds have already received approval from the federal government to ‘restructure’ and slice benefits, meaning thousands of New Yorkers who are members of the state pension program may lose out.” -Assemblyman Mike Fitzpatrick
While the current New York State Constitution does not allow for pension cuts, a constitutional amendment could reverse that, leaving hundreds of thousands of state employees without much of a financial nest egg to grow old on. Fitzpatrick has recommended a 401(k)-style contribution to NY state Legislature, that has proven widely beneficial for SUNY instructional staff.
“Such a plan is currently available to the instructional staff at all 64 institutions in the SUNY system and should be extended to all state workers. I have submitted legislation to do so, which would also ease the tax burden on our residents. My plan will protect state workers from what those enrolled in the Central States Pension Fund are going through and it will protect our taxpayers from having to pay more in taxes to bail out our pension system when the same events inevitably happen here.” -Assemblyman Mike Fitzpatrick
Assemblyman Fitzpatrick is the prime sponsor of two bills aimed at reforming the pension system. Assembly Bill 4285 establishes a defined contribution system for state workers to enroll in and Assembly Bill 4957 mandates that all elected officials be enrolled in the defined contribution program. He also sponsors A.4643-A to remove pension and retirement benefits from elected officials convicted of felonies related to their official duties.