Friday, April 09, 2021

CHIEF LEADER PUBLISHES STORY ON EARLY RETIREMENT INCENTIVE

Thanks to a friend for sending this out. This is from the Chief Leader civil service newspaper. It is behind a paywall so if you used up your free articles, we have it in its entirety below. There is not one word from the UFT in the piece.

The part that may concern most of you is this:

The measure they obtained will not be extended to the city's uniformed workers, and Mayor de Blasio and municipal-agency heads have discretion as to which job titles will be offered the incentive, according to Brooklyn Assemblyman Peter Abbate, who chairs the Committee on Governmental Employees and was the bill’s prime sponsor.

Does this mean Chancellor Porter or Mayor de Blasio can say DOE employees will not be offered the ERI? I hope I am reading that wrong or that the Mayor is on board.


The full Chief article:

Thousands of city employees may have the option to retire early while getting up to 36 months' additional pension credit under a provision included in the state's $212-billion budget that was approved April 6.

The Municipal Labor Committee since last summer had urged the de Blasio administration to consider an early-retirement incentive at a time when it was threatening up to 22,000 layoffs unless it got at least $1 billion in savings from the unions to close what then loomed as a $9-billion city budget gap caused by a drop in tax revenues caused by the impact of the coronavirus on the city's economy.

Unions Kept Pressing

The layoffs were avoided after many of the unions agreed to defer wages and fringe benefits that would have come due in the current fiscal year, which runs through June 30, producing $800 million in short-term savings for the city as it awaited relief from the Federal Government.

But even after the city's share of the American Rescue Plan that was approved by slim, all-Democratic majorities in both houses of Congress at President Biden's request, District Council 37 and the United Federation of Teachers pressed their case for an early-retirement incentive in Albany.  

The measure they obtained will not be extended to the city's uniformed workers, and Mayor de Blasio and municipal-agency heads have discretion as to which job titles will be offered the incentive, according to Brooklyn Assemblyman Peter Abbate, who chairs the Committee on Governmental Employees and was the bill’s prime sponsor.

“As an example, he [the Mayor] could say I don’t want to include Health + Hospitals right now because of COVID-19,” he said during an April 7 phone interview. “He has to also pick two dates now; a date for when city employees can start applying and a cutoff day."

How Credit is Computed

Mr. Abbate continued, “There are two parts; Part A is for those 55 years of age with 25 years of service in, and Part B—you get one month for each year you worked up until three years. You can only pick one of them, and it’s the city’s option who they want to offer it to.”

He expressed the hope that the incentive would provide relief for veteran front-line city workers “burned out” by the pandemic after falling it will the virus. “Some of them really went through a lot and are just in fear of going back into the office,” he said.

More than 300 city workers died from COVID and thousands more were sidelined, some of whom are still convalescing.  

According to State Sen. Andrew Gounardes, chair of his house's Committee on Civil Service and Pensions, the legislation was necessary “because the city is not out of the fiscal woods yet." If conditions worsened, reducing the payroll through additional retirements because of the incentive would help city avoid laying off newer employees and “incentivize the next generation into staying with public service,” he said.

Money-Saver in Past

More than six months ago Republican City Council Member Joseph Borelli maintained the program had the potential to yield hundreds of millions of dollars in annual savings, citing a 2010 incentive authorized by then-Gov. David Paterson. He said more than 9,300 city and state workers took advantage, and even with the added pension costs, the net payroll savings of $680 million annually for the state and city made it a worthwhile program.

In a statement, Henry Garrido, the executive director of DC 37, said the retirement incentive was “not only fair, but also just” for the “unsung heroes of New York City” who kept the city’s “round-the-clock essential services” running throughout the pandemic.

United Probation Officers Association President Dalvanie Powell said, "Giving hardworking civil servants the option of an early retirement will help the city maintain essential services. reduce spending and do right by the workers who have bravely and selflessly served our community."

Joe Puleo, president of DC 37 Local 983, who pushed hard for the retirement incentive, said in a text message, “A lot of eligible members now feel they have taken control of their future.”

EMS Union: Why Not Us?

During an April 7 phone interview Anthony Almojera, vice president of DC 37 Local 3621, which represents Emergency Medical Service officers, protested the exclusion of that union's members based on their being considered uniformed workers.

“They want the best of both worlds,” he said of city officials. “They offer us a lower civilian wage package contractually, but then they say we are uniformed services for the purpose of denying us early retirement.”


56 comments:

  1. Meanwhile, the Amazon warehouse workers in Alabama will not be forming a union.

    The majority of Amazon's workers in Bessemer, Ala., voted against joining the Retail, Wholesale and Department Store Union. The final tally was 1,798 votes against unionizing versus 738 votes in favor of union.

    https://www.npr.org/2021/04/09/982139494/its-a-no-amazon-warehouse-workers-vote-against-unionizing-in-historic-election

    ReplyDelete
  2. You are way off topic Shelley but I get the importance of this voye.

    ReplyDelete
  3. One would assume that if ERI’s are offered to city workers—that would mean all city workers. Mulgrew has to step up to the plate on this one—big time.

    ReplyDelete
  4. There is no budget gap for the coming fiscal year, so ERI this year is really for people who are tired. Next year, we likely will see a big gap, that is when ERI is needed for the fiscal reason.

    I hope we see another ERI soon again.

    ReplyDelete
    Replies
    1. So it's a bad time to save taxpayers millions of dollars? ��

      And I guess it's also a bad time to give younger people a chance to start a career in public employment without having to move somewhere else. And a bad time to give older people who have worked for the public for over 25 years (for lower wages than they could have made in the private sector) -- those at greatest risk during the pandemic -- a chance to actually retire. If they're "tired" it's because they've earned it working for decades.

      Obviously when it comes to saving huge sums of money, the sooner the better...always. But you'd rather wait for a "big gap." Which is essentially waiting until you're in more massive debt before deciding to become fiscally intelligent. It's like waiting for a cancer diagnosis before considering giving up smoking. Brilliant, just brilliant.

      Delete
  5. and Part B—you get one month for each year you worked up until three years.

    If I am 40 with 19 year completed this June can I take this?

    ReplyDelete
    Replies
    1. 1:52

      You don’t collect till 55.

      The word ‘early’, as in ‘Early Retirement Incentive’ does not refer to earliest age for pension. That remains 55.

      It is possible (and very rare for obvious reasons) to ‘retire’ earlier...but you do not receive a pension till age 55.

      Delete
  6. I think you have to be a certain age to collect, even under B. At 40, you won't be eligible.

    ReplyDelete
  7. Why aren’t CSEA workers part of ERI in lLong Island

    ReplyDelete
  8. Ask your legislator to explain why LI and state workers are not included. This looks like a very poorly designed law.

    ReplyDelete
    Replies
    1. I agree , state workers should be included like 2010. Would save in the ling run.

      Delete
  9. You can retire at 19 years in, but you won't collect until you are 62 and your pension will be only your gas money.

    ReplyDelete
  10. 2:31: But you can only collect at 55 if you have 30 years in. Otherwise you have to wait until 62.

    ReplyDelete
    Replies
    1. 3:29

      No.

      This is separate and apart from any ERI discussion but you may collect at age 55...BUT you are hit with a sharp penalty if you have less than 30 years.

      - A prorated reduction of up to 27% when retirement occurs before age 62 with less than 30 years of NYS service.
      - No reductions if the member is age 62, or if credit totals 30 years or more.

      Delete
  11. Wait a sec, so anyone can take the ERI? Im in the same boat. Understood I would wait till 55 to collect. 19 years in, adding 19 months for pension purposes would give me the 20+ years to get the 2% per year. Is that accurate. This will be retirement for me. Ive saved and invested enough. 40 years old.

    ReplyDelete
  12. @3:29 incorrect. U can collect at 55 but with reductions pro rated from full retirement age.

    ReplyDelete
  13. I get it. 27% penalty at 55. But i can retire at 19 years in and qualify for the 2% per year for 20+ years...

    ReplyDelete
  14. Mulgrew and Di Blasio are half brothers.

    ReplyDelete
  15. I believe DeBlasio will offer it to teachers- Mulgrew agreeing to these ridiculous and irresponsible closure criteria was probably part of yet another sleazy, backdoor deals. We all know how the UFT panders to the retiree chapter.

    ReplyDelete
  16. why wount diblasio offer it to teachers? it moves a few off payroll that might have hung on-- but doesnt get enough off payroll to create a long term financial burden

    ReplyDelete
  17. I was always told you had to wait until 62 if you retired before hitting 30 years. I thought I read it in the UFT contract unless there is some loophole I'm not aware of.

    ReplyDelete
  18. 5:03 You made me laugh!

    Up to 3 yrs added to years of service? Sounds sweet!

    ReplyDelete
  19. I am going to be 57 in July with 24 years and I know I will be penalized but will still go for it. Anyone has a suggestion? Good to hear opinions of others.

    ReplyDelete
  20. I am going to be 57 in July with 24 years and I know I will be penalized but will still go for it. Anyone has a suggestion? Good to hear opinions of others.

    ReplyDelete
  21. I am going to be 57 in July with 24 years and I know I will be penalized but will still go for it. Anyone has a suggestion? Good to hear opinions of others.

    ReplyDelete
  22. As a teacher I believe that if you are signed up for and have met the criteria of the 25/55 plan you be offered the incentive option B . Ex, I'm age 59 w 28.5 yrs. and I believe we will be eligible to take the Part B option with ex 28 months added to my pensionable years. That is the rumor I have heard anyway.

    ReplyDelete
    Replies
    1. I didn’t buy in in to 55/25 because I know at the time I would not be eligible so I don’t think I can be in option B. Not sure.

      Delete
  23. As a teacher I believe that if you are signed up for and have met the criteria of the 25/55 plan you be offered the incentive option B . Ex, I'm age 59 w 28.5 yrs. and I believe we will be eligible to take the Part B option with ex 28 months added to my pensionable years. That is the rumor I have heard anyway.

    ReplyDelete
  24. Is this available to people of all ages?

    ReplyDelete
  25. I am 53.5 years old with 28 years of service. Am I eligible for anything?

    ReplyDelete
  26. Thank you so much for this exclusive reporting. Can’t find it anywhere.

    I am 57....24 years. Tier 4. Did not do 55/25. I was planning on retiring next Feb 1. 58/25. With 82% pension. But this might end up helping me if it gives me more years to factor in? Or if it eliminates my 18% reduction? Wishing it’s the latter. ��

    ReplyDelete
    Replies
    1. How are you getting 82% pension? 25 years x 2% is 50%.

      Delete
    2. How do you get an 82% pension with 25 years?

      Delete
    3. You guys are comparing apples and oranges. When I say 82% pension I’m not talking about 82% of my salary!!! Jeez. Have u even been to a retirement consultation? Instead of getting your full 100% PENSION meaning 100% of that formula (2% of FAS x years) you only get 82% of that. Do u get it now???

      Delete
  27. You and I are in the same boat. Didn’t sign in to 55/25. 57/ 24 in July. Hope this works for both of us my friend.

    ReplyDelete
  28. 1104...

    I dont think 25 yrs gets you an 82% pension....more like 50% of you FAS (ave of the last three years). Check it oy first.

    Anyone have a comment?

    ReplyDelete
  29. I don’t understand why so many of you didn’t opt in to 55/25 when you were clearly eligible and would have benefited. I’m not blaming you, but I don’t get it. Did you CL not explain the benefits of the program clearly or did you just think you were going to work to 62? Just wondering.

    ReplyDelete
    Replies
    1. We never in a million years thought in 2007/8 we would retire from the doe. Lol. Seriously.

      Delete
  30. James...

    So, does this mean if I opted into 55/25, I cant retire early? Or can the extra years be added to my service?

    How will those extra years be counted towards my FAS, if I never really worked at top salary, but got the credit?

    If so, can I get out of 55/25?

    ReplyDelete
  31. Too many teachers don’t know anything about their pension plan. Start reading. Get a consultation. Attend pension clinic. If you’re relying on this blog for that info, you’re not going to be fully informed. James is not a pension consultant and has never pretended to be one.

    ReplyDelete
  32. 50/20 here. I have always been prepping for 55/25 and will be comfortable in my TDA on my 55th birthday. I can accept that this ERI may not work for me. But its tough to swallow paying in for many years and being both looked past and offered nothing.

    ReplyDelete
  33. 12:12 and everyone, I have some knowledge of pension but you are right I am not a pension consultant and don't pretend to be one. Sorry, I really do not feel qualified to answer all of the individual questions people have. Please call UFT or TRS.

    These posts on the ERI have been informational using publicly available sources. We are trying to simply keep UFTers up do date.

    ReplyDelete
  34. I think to get to 82% you would have to work 11 more years since it's 2% additional for every year over your retirement. So you would have to work 36 years. Good luck with that.

    ReplyDelete
    Replies
    1. 12:45

      No.

      It is 1.5% for each year over 30. (Tier I had 2%).

      So if you have precisely 30 years and are 55 (+) now, this ERI lets you go at the end of the year with 63.75% (without it you would go at 60%).

      Beyond that, the 82% is simply in error. For a Tier IV to hit 82% would normally take 44 years.

      Delete
  35. 54 and 9 months and 24 and 6 months . Oct 1 retirement most likely. James I have paid in to 55/25 since its inception.Is it so that those who did not contribute the 1.85% are going to get the same 50% pension at 55/25 maybe someone at like 55/24 will even be given the benefit of 55/25 and the time in terms of 1 month per year?

    ReplyDelete
  36. James, very well said. I am happy that this blog does not try to answer pension questions. Pensions are very person specific. You can't paint everyone with the same brush. All pension related questions should go to a UFT consultant or TRS.

    ReplyDelete
  37. I think the questions being asked are due to the legalize in the specific language / writting of the ERI. the fact that we can all read the same text, and NOONE knows what it means is problematic.

    ReplyDelete
  38. I paid into 25/55 and I am 40 with 19 years, had no idea, hope I get the money I invested back. The people who really should be irate are tier VI, no chance of making it, and the pension would be so bad you might as well for at rite aid.

    Good articles on retirement (for your own research):
    http://chaz11.blogspot.com/search/label/Retirement
    http://chaz11.blogspot.com/2014/12/a-simple-chart-to-determine-your-tier-4.html
    http://chaz11.blogspot.com/2016/04/our-tda-and-required-minimum.html

    ReplyDelete
  39. Because you pay dues, UNITY UFT leader announced change in 6 ft rule with Mayor while knowing they did not have approval from the state.

    Six foot rule still remains in effect. Please notify your school communities of this important email.

    ReplyDelete
  40. Pretty sure previous poster was not referring to 82% of FAS but rather what would be left after penalty for early retirement. In other words an 18% penalty. Only people getting 82 are tiers1&2 who have part of their pension invested in variable stock fund

    ReplyDelete
  41. Anon2323,

    I agree. Tier 6 is awful.

    You could rob a bank, get 35 years inside the can and be out before a tier 6 employee.

    You can’t do this job knowing you will have to do it 40 plus years.

    I have a decade to go and will work another job at age 55 outside of NY

    My kid knows that if she goes to college for teaching that I won’t contribute a dime to her education.

    It’s been a nice life for a tier 4 person, but tier 6 is brutal.

    ReplyDelete
  42. Actually Veteran teacher I believe it was higher that 2% for tier 1.

    I believe it was 2% from 20-30 years and then either 2 3/4 or 2 2/3 percent for the years after 30. I remember reading a union binder that our union rep had in the 90"s and it said that. In addition, I remember that teachers working in certain low performing neighborhoods received 2 for 1 in years of pension credit. So for every year they worked there they would get 2 years credited to TRS.(Not sure if that was tier specific or not but I remember it)

    I also think that has to be the case because if you go on Seethroughnewyork and look up teachers who retired 15plus years ago they are collecting 80,000 plus pensions. The salaries weren't that high years ago to create that type of pension. Has to be a higher rater that 2% for tier 1.

    ReplyDelete
  43. Disgusted in Queens. These huge pensions you seeing are not a function of percentage of FAS but occur because of the cumulative effect of a rising stock market. We were able to have a component of our pensions invested in what was then termed
    Variable A. My FAS was 109k (with per session)
    When I retired in 2012. My pension last year was
    101000. More than 90%. God bless Tier 2

    ReplyDelete
    Replies
    1. Stop rubbing it in our noses! I’ll be at 101 when I start collecting SS in 15 years!

      Delete
  44. Prehistoric pedagogue- Thanks for the info. That is awesome. Good for you!
    Wish we could negotiate that for tier 4-6.

    ReplyDelete
  45. He/she who gives pension advice in blog comments is a fool. He/she who asks for and accepts pension advice from anonymous bloggers is a bigger fool.

    ReplyDelete

●Comments are moderated.
●Kindly use your Google account. ●Anonymous comments only from Google accounts.
●Please stay on topic and use reputable sources.
●Irrelevant comments will not be posted.
●Try to be respectful; we are professionals.