Moratorium on Progress: How New York’s “Moratorium” Statute Has Helped Halt Public Sector Teacher Pension Reform

By Ed Delauter, Albany Government Law Review

We need a government that performs better and costs less . . . . [this] means enacting mandate relief.  By next year, pension costs for schools and state and local governments will have increased one hundred percent since 2009.  We need to reform the pension system and create a Tier VI.  The joint Legislature and Executive Mandate relief Council we created last year will begin its work this month.  I will request that Council hold public hearings.  We need a robust discussion on the pros and cons of the mandates.[1]

Amidst the backdrop of a national recession and record federal and state budget deficits across the nation—including New York[2]—Governor Cuomo stood before the crowd gathered at Empire State Plaza on January 4, 2012 and delivered the 2012 State of the State address.[3]  The Governor emphasized the need to reduce the amount of retiree benefits received by public workers, specifically public pensions.[4]  To achieve this reduction the Governor announced his plans to include a Tier VI pension plan into his budget proposal.[5]  The proposal for a Tier VI pension system was unsurprising considering the Governor’s efforts to get the legislature to pass the Tier VI pension system the previous year as a stand-alone bill,[6] and the skyrocketing cost of retiree benefits in conjunction with a tail spinning economy.[7]

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