Office of Borough President James P. Molinaro
Staten Island, New York
B.P. Molinaro: end overtime padding and save City jobs
Strongly supports Mayor’s “home rule” pension reform plan
STATEN ISLAND, N.Y. – “Overtime calculated into pensions is financially unsustainable,” Borough President Molinaro said today. “It’s one of the pension benefits that must be reformed. I urge New Yorkers to support Mayor Bloomberg’s efforts toward pension reform because it will save jobs -- police officers, firefighters, teachers, and other City workers.
“I have been pro-labor all my life,” Molinaro added, “but I’m also pro-common sense. Overtime counted toward pension calculations was created with good intentions, but over time has become abused. Some workers have found a way to manipulate the overtime benefits in order to increase their retirement pensions, which in turn contributes to the City’s current budget crisis.
“And we must return the power to negotiate pensions from Albany to the Mayor,” Molinaro continued. “Albany should not be setting pensions for City workers and then giving the tab to City taxpayers. The Mayor negotiates salaries and all other benefits with City unions. He should negotiate pensions, too.
“The current pension system – and Albany’s control of it -- costs the City billions of dollars and these unfunded mandates threaten the stability of communities throughout the State,” Molinaro said. “It also takes away from other City services, including programs for children, the elderly, and other groups who depend on City funding.
“In the 1970’s, the State took away the City’s power to negotiate pensions after the fiscal crisis,” Molinaro added. “Almost 40 years later, the State is showing itself to be a worse caretaker over pensions than the City ever was. Why should lawmakers from Buffalo and Nassau County be negotiating pensions affecting our workers in New York City? Let’s give New York City back its power to negotiate.
“In 2001, each taxpayer contributed about $682 to the City pension system,” Molinaro continued. “Currently, that number has risen to $3,182. On July 1 of this year, it will jump to $3,773. When you look at these numbers it is easy to see why many hardworking New Yorkers are fleeing the City for other areas of the country.
“I want New Yorkers to realize why supporting pension reform is so important for them,” Molinaro said. “I want them to think of the City’s $8 billion in pension costs every time they complain that we need more police officers, firefighters, and teachers, or when layoffs are considered. When parents complain that there is not enough arts education in the schools, or when families demand more services for seniors, please remember the massive spending the City must do to maintain the pension system as it currently exists.
“This all trickles down to quality of life,” Molinaro concluded. “The budget deficits we face affect our schools, our roads, our parks and our services. The abuse and impracticalities of the pension system ultimately hurts us, the taxpayers of New York City.”
February 8, 2011