For everyone who keeps asking questions on the Early Retirement Incentive bill up in Albany where I have few, if any, answers, here is the latest from the Chief Leader civil service weekly newspaper.
Unions Throw Weight Behind Bill Adding 3 Years' Pension Credit
By BOB HENNELLY
The municipal unions are backing a bill introduced in Albany that offers an early-retirement incentive of up to three years of additional pension credit to tens of thousands of civil servants who are at least 55 years of age and have logged 25 years of service or are otherwise eligible to retire.
State Sen. Andrew Gounardes, Chairman of the Committee on Civil Service and Pensions, and Assemblyman Peter Abbate, who heads the the Committee on Governmental Employees, drafted the measure they estimate will save the city hundreds of millions of dollars and help close its $9-billion budget gap.
Offered to Civilian Staff
The incentive is being offered to civilian employees who are enrolled in the New York City Employees' Retirement System, the city Teachers' Retirement System and the Board of Education Retirement System.
There is a carve-out provision that permits the city to reject an early-retirement request if the applicant "holds a position that is deemed critical to the maintenance of public health and safety."
In 2010, when a retirement incentive was offered statewide, $681 million was saved over two years.
"A public health-crisis has caused a fiscal crisis, and to fight it, we need to be resourceful and use every tool available to us to prevent layoffs," Mr. Gounardes said. "An Early Retirement Incentive saves jobs while providing public employees an option to retire early that they may wish to take."
The bill's supporters hope it will provide an off-ramp for thousands of older civil servants who have pre-existing health conditions and might be more susceptible to the coronavirus.
'Already Lost Hundreds'
"We have already lost several hundred public employees in New York City to COVID," Senator Gounardes said during a phone interview. "We have many people that have still had to be out there on the front lines doing their job and are obviously vulnerable to this virus, so this will also help them."
According to the estimates in the bill, 34,700 employees of the more-than 75,600 who are eligible would opt to take advantage. The average age of the early-retirement program participants is projected to be 60.8 years old, with an average of 26.3 years on the job and a $91,000 average salary.
After getting $450 million in short-term savings when an arbitrator's ruling allowed the city to delay paying half of its $900-million retroactive wages obligation to the United Federation of Teachers, Mayor de Blasio stepped up efforts to get relief from other city unions while waiting on possible Federal aid and authorization of $5 billion in additional borrowing authority from Albany.
"The COVID-19 global pandemic has crippled our city's economy," District Council 37 Executive Director Henry Garrido said in a statement in support of the early-retirement bill. "Municipal workers, who guided this city through the darkest days of the pandemic, are now in danger of losing their jobs at the worst possible time. That is why this Early Retirement Incentive legislation is so important."
UFT: A Dual Benefit
"In times of fiscal stress, measures like this have helped local governments maintain services even as they reduced spending," said UFT President Michael Mulgrew, adding that the bill "would provide a welcome additional incentive for educators who want to retire early, and at the same time help our city and school system deal with the current financial crisis."
"Employee layoffs are detrimental to the city economy, the provision of services and the workers," Municipal Labor Committee Chairman Harry Nespoli said.
But Sen. James Sanders warned that the bill could hurt some agencies, saying, "Sadly, some of your most capable workers will leave. Anytime a bureaucracy divests itself there are problems that come along with that...We will lose a certain amount of institutional memory."
I hope they change this thing to include people like me that opted into 55 /25 and will be age 55 with 23 years on the job.
ReplyDeleteWho knows how this will play out. 50 years of age with 20 years would work for many
I hope they get the show on the road so I can walk away from this mess.
So would appreciate some clarity. I am 62 with 17 years in. Do I fall under “otherwise eligible ? Will I have penalties? Thanks
ReplyDeleteEveryone in every NYC civil service position is looking to escape. We need Snake Plisskin for mayor.
ReplyDeleteThe only reason news just broke about opt in for students is that the city now can reduce staff due to lower enrollment in school for the rest of this school year. Now it's either layoffs or an ERI for teachers. Take the ERI if you are eligible.
ReplyDeleteAlso are all sports cancelled for the rest of the year if students opt out now for in person learning?
The ERI will take effect for this school year right?
ReplyDeleteThis is great news for those who are ready to retire this year!
Are those who are part of 25/55 eligible?
Anyone know what this means for someone who bought into 55/25? I am 49 and in my 26th year. I am so ready and by July I’ll be 50 🙏🏻🙏🏻🙏🏻
ReplyDeleteSo, I am closing in on 55/25 does that mean 58/28, or refund on the 1.85?
ReplyDeleteI hope they allow anyone in the existing 25/55 program to retire after they hit 25 years, regardless of age. We already paid for it!
ReplyDeleteThis misses Part A of the bill, which clearly states 50 years old. Can someone with 28 years (30 with the additional credit) at age 53 retire without penalty?
ReplyDeleteYes, understood that it is a bill and a draft:
ReplyDeleteMy question is similar to some of the other folks posting and will of course be relevant to hundreds if not thousands of teachers:
What is the Part A rule, for teachers who are 50 and above, in reference to the ERI?
Ex: I am almost 52, with almost 29 years - I am not in 25/55. Like everyone, my goal is to retire at full pension/no penalty, and would like to start collecting pension seamlessly, not wait until 55.
Questions:
1. In what ways can someone retire without a penalty [no pension reduction]?
2. when can a person who opts in to the ERI begin to collect the pension? [do we have to wait until 55?]
Previous ERI bills did not make it through the legislative process.
ReplyDeleteHow can we help to make this one successful? It is great that the sponsors are pretty high-profile people in Albany. Can we get more Senators and Assembly on board? Can we get a projected time line for when we have to throw our support behind this? It would be terrible if it dies on the vine, we should support it and help make it official,
There was a time when this job was fun to work. We didnt worry about getting out. The last twenty years since bloomberg took over its been us against them mentality. I have 18 years in and Im 53 years old. Its sad to think I would consider retiring if it applied to me. I want to do seven more years but each year gets harder and harder.
ReplyDeleteI echo the post of 10:37 because I do not speak legalese but am in a very similar situation, I would appreciate if someone can help clarify Part A possibilities.
ReplyDeleteBad answer but you have to read the bill. That said, it could be amended so we really don't know what the final incentive might look like. We printed the Chief piece to show that the issue is getting coverage in the press.
ReplyDeleteI know it’s a waiting game but I hope this ERI allows anyone who wants out to get out. The people with 55 years of age and 25 or plus years. AND the people that opted into 25 /55 like me . That will have the age but not the time. I work in District 75 and work 683. I make more then some APs out there. Buy me out ! Think of the savings.
ReplyDeleteJust so we're clear, this bill may have support but it hasn't moved anywhere, just like the other similar bills. It's still in committee. It hasn't passed the assembly nor was it delivered to the governor. I'm not getting excited about anything until there is movement.
ReplyDeleteWhen When When
ReplyDeleteUnless there is an emergency session, they Legisature won't be back in session until next year. This will not pass until next April or June.
ReplyDeleteAll previous ERI, if you started collecting before 55 no matter how many years you had in, there was a penalty. However you could still retire and try and survive till 55 before collecting
ReplyDeleteJames:
ReplyDeleteIs the 25 yrs of service inclusive of the three "gifted" yrs?
If a teacher retired with 22 yrs of real service, would they get a 25 yr pension?
The bottom line is that anyone over 50 years old, with 25 or more years of pensionable service time hopes to be eligible for this ERI. If they made access to one's pension immediate, as well as access to their TDA, there would be a run to sign on the dotted line.
ReplyDeleteIt’s always a hurry up and wait. These guys get things done like constipated hemroid sufferers.
ReplyDeleteI am ever more grateful to James with the passing of Chaz, this is right up chaz ally.
ReplyDeleteThey should absolutely allow teachers to retire after 25 years. I would need 34 years in to retire at 55 no chance in hell that happens I enrolled in 25/55. Praying for 50/25 or 25 years teaching package.
Speaking of Chaz, one of the students who learned from both of us at Jamaica HS set up a fund in his name at St Judes Children's Hospital. A quick reminder to please give a few dollars.
ReplyDeletehttps://iceuftblog.blogspot.com/2020/09/jamaica-hs-alumni-set-up-fund-for-st.html?m=1
Mulgrew's leadership and the safest testing program in the country...
ReplyDeleteMy co teacher just called me that tracing from the city just called him because he was exposed to covid and needs to quarantine. I share a room with him and my admin told me I need to report to work tomorrow even though my co teacher needs to quarantine. Is this correct? My admin said it’s per DOE guidance that I must report to work. I feel like it would just be safer for me to also quarantine??? But I wasn’t given an option. Do i really need to use a car day to keep people safe??
A child in my children's school tested positive. Contact tracing was asking the 7yr old who she played with during recess. She wasn't able to remember all the kids' names, so only 7 were told to quarantine. This is a Long Island school. Yesterday we got called that another kid in the school tested positive. It's only a matter of time until numbers skyrocket again. I got covid tested at school and I honestly felt like it's a joke just to appease the public. That lil tiny stick barely touched my nose.
ReplyDeleteEducation as we know it is gone. The new grading policy just reaffirmed for me what I already knew, THE DOE IS THE WORST!
@12:08-- You are a tertiary level of potential exposure. Now if you co-teacher tests positive then you would need to quarantine.
ReplyDeleteNobody in the UFT or DOE cares about the infection of teachers. They only care about not getting infected themselves:
ReplyDeleteHas anything ever come of this?
ReplyDeleteHas anything ever come of this? Will we get notified?
ReplyDeleteI hope we hear something soon. I want out.
ReplyDeleteI guess it is too late for the Assembly and Senate to have a special session to address the incentive. We will have to wait for January 7. I think that is the first day of the 2021 session. You would think with all the pandemic related fiscal issues the State is faced with the legislators would be more responsive. Politics at its finest.
ReplyDelete