Many members are going to see some increased pension benefits, and even some more money in their paychecks.
One of the most important parts of the PSC state budget campaign this year was pushing for an overhaul of Tier 6, the inferior pension tier for new state employees enacted under the Cuomo administration. The “Fix Tier Six” campaign was a top priority for our statewide affiliate, NYSUT, and for all of the state’s public-sector unions. This year’s budget settlement has some significant victories on that front.
Anyone enrolled in the “New York State Teachers’ Retirement System (TRS), as well as those enrolled in the retirement system in New York City, who are in Tier 6 would be able to retire at age 58 with 30 years of service. The previous age was 63,” Albany’s Times-Union reported. “The bill also restructures employee contribution rates for Tier 6 members across several retirement systems. The current law generally requires contribution rates ranging from 3% to 6%, depending on salary levels.”
Out-of-pocket contributions will be reduced starting October 1 of this year.
| Reduced Contribution Rates Begin October 1 | ||
| Current Tier 6 Member Contributions | New Tier 6 Member Contribution | |
| $45,000 or less | 3% | 3% |
| $45,000-55,000 | 3.5% | 3% |
| $55,000-75,000 | 4.5% | 3% |
| $75,000-$100,000 | 5.7% | 4% |
| $100,000 – $125,000 | 6% | 5.25% |
| More than $125,000 | 6% | 5.75% |
“For members in the SUNY and CUNY Optional Retirement Program, contribution bands will be adjusted to align with changes in the other retirement systems, and members will receive an additional 1 percent state contribution to their ORP accounts,” the PSC’s state affiliate, New York State United Teachers, said on its website.
The changes mean more money in PSC members’ pockets. For example, an assistant professor on the five-year step would see a reduction in mandatory contributions of more than $1,700 annually, a lecturer on the same step would save $1560, and an assistant to HEO on that step would save $1500.
Retirement benefits for PSC members enrolled in the ORP are typically administered by TIAA. About 70% of full-time CUNY faculty and staff are enrolled in the ORP; 30% are in TRS. Adjuncts and Continuing Education Teachers are eligible to join TRS. Tier 6 covers two-thirds of state workers, including CUNY faculty and staff. Public workers who earn overtime will also have more of their overtime count toward their pension calculation.
PSC leaders, who have been active in the campaign, hailed the changes.
“NYSUT’s campaign to restore TRS pension benefits to the pre-2012 Tier 4 levels has been making steady although incremental gains over the past few years,” said Diane Menna, vice chair of the PSC’s retiree chapter. She added, “This year’s restored benefits demonstrate that full Tier 4 pension benefits can be restored if we continue to support this campaign and each other.”
PSC President James Davis said, “We should all be proud of the work PSC members did with our NYSUT colleagues to secure major reforms this year to Tier 6, a 14-year-old invention of Andrew Cuomo. Reductions to the minimum retirement age and minimum employee contribution, along with a 1% increase in state contributions, mean money in the pockets of TRS members and their families. The fact that we won corresponding changes to the ORP is big for higher ed, as the majority of PSC and UUP participants are there. We’ll keep fighting until Tier 6 aligns with Tier 4.”
Union members from around the state gathered in Albany to fix Tier 6 (Credit: El-Wise Noisette/NYSUT).
Governor Andrew Cuomo strong-armed the state legislature into increasing worker contributions and extending time to retirement when they established Tier 6 in 2012. The PSC and other unions have been pushing to reverse the changes ever since.
In 2022, the 10-year vesting period enacted with Tiers 5 and 6 was reduced to 5 years. Halving the vesting period to match Tier 4 guaranteed a pension benefit for 85,000 Tier 6 members, according to the UFT. In 2024, the Final Average Salary calculation was reformed to allow for more generous payouts.
The latest reform to TRS ensures will, as Menna described it, ensure that “members who begin their careers at a young age do not have to work 40 years before collecting their full retirement benefits.”
Jessica Ramos, chair of the senate labor committee, said the changes were among “practical, meaningful steps” in this year’s budget agreement that “improve retirement equity” and “ensure New York remains a place where working families can build stable lives.”
Clarion reported earlier this year as PSC members joined 15,000 union members from across the state at a rally to push for a major overhaul in this year’s budget.
When it comes to measuring victories, Clarion has often looked at the reliably anti-union New York Post editorial board. The pro-1% hyenas over there hate the Tier 6 reform in the budget, so that indicates that this is a good thing for working people.
Unions like the PSC joined together this year to push for this change and they are now seeing the fruits of that labor. Public Employees Federation President Wayne Spence said, “While pension equity for all Tier 6 members is not yet complete, this victory shows that when we organize and fight, we win.”
