•New Employee Contribution Rates: The new tier increases employee contribution rates in a progressive fashion to ensure lower paid state and local workers are not seriously affected. Employee contribution rates vary depending on salary:

o $0 – $45,000: 3%

o $45,000 – $55,000: 3.5%

o $55,000 – $75,000: 4.5%

o $75,000 – $100,000: 5.75%

o $100,000+: 6%

These rates remain substantially lower than the large majority of similar state systems around the country. The new tier impacts only newly hired employees. Existing employees and retirees retain all benefits.

•Increase of the Retirement Age: The pension reform includes an increase in the retirement age from 62 to 63 and includes provisions allowing early retirement with penalties. For each year of retirement prior to 63, employee pension allowances will be permanently reduced by 6.5%.

•Readjustment of Pension Multiplier: Under Tier VI, the new pension multiplier will be 1.75% for the first 20 years of service, and 2% starting in the 21st year. For an employee who works 30 years, their pension will be 55% of final average salary under Tier VI, instead of 60% under Tier V. This readjustment brings New York more in line with most other states and will save billions of dollars for taxpayers and local governments.

•Vesting: Under Tier VI, employees will vest after 10 years of service.

•Protect Local Governments From State Pension Sweeteners: The agreement requires the state to pre-fund any pension enhancers, ensuring that these costs are no longer passed to local governments.

•Adjustments to Final Average Salary Calculation to Help Reducing Pension Padding: The agreement changes the time period for final average salary calculation from 3 years to 5 years. To limit how much overtime can be used to determine an employee’s pension, pensionable overtime for civilian and non-uniformed employees will be capped at $15,000 plus inflation, and for uniformed employees outside of New York City capped at 15% of base pay. Tier VI puts in place new anti-spiking measures which cap growth in salary used to determine pension allowances at 10% for all employees statewide. These reforms will take major steps toward addressing instances of abuse and pension padding. Tier VI also eliminates lump sum payments of unused sick and vacation time from the calculation of final average salary.

•Voluntary and Portable Defined Contribution Option: The legislation includes an optional defined contribution plan for new non-union employees with salaries $75,000 and above. In the modern economy, employees often change jobs multiple times and need pension portability. Many states, the federal government, and most private employers provide some form of defined contribution plans to their employees. The state will make an 8% contribution to employee contribution accounts. Currently, SUNY and CUNY offer such an option through TIAA-CREF that has been successful and popular. This is a voluntary option for those employees who prefer the portability and vesting feature not available with defined benefit options, and will help attract top talent to state government.

•Adjustments to SUNY/CUNY TIAA-CREF Plan: Under Tier VI, SUNY and CUNY employees who elect the TIAA-CREF plan will receive an employer contribution of 8% of salary for the first 7 years of service and 10% thereafter.

•Limiting Number of Sick and Leave Days that Can Pad Pensions: Tier VI reduces by half- from 200 to 100- the number of sick and leave days that can be used for retirement service credit.

•Salary Reform: Previous tiers allowed salaries from an unlimited amount of employers for calculating retirement benefits. Tier VI allows only two salaries for the calculation.

•Limiting Pension Benefit of High Paid Employees: For new higher paid employees, the amount earned above the Governor’s salary (currently $179,000) will not be eligible for pension calculation under Tier VI.

The leaders of the Let New York Work coalition today fired back to dispel many of the myths that are being touted by groups that oppose the creation and implementation of a new retirement tier for state and local employees.  The document, titled Tier VI Pension Reform:  Myths vs. Realities, can be found at http://slidesha.re/xskNtz.

In his 2012-13 proposed state budget, Governor Cuomo introduced a new Tier VI Retirement plan for future state and local government employees.  In addition to a reduced Defined Benefit option, the plan also proposes a Defined Contribution option that mirrors the SUNY/CUNY model. 

“As the debate continues about the potential to save New York taxpayers more than $100 billion dollars over the next 30 years, it is imperative that people understand the realities of what is being proposed, said Brian Sampson, Executive Director of Unshackle Upstate speaking on behalf of the group. “Far too often people opposed to changing the system are using myths and scare tactics to confuse people.  Our goal today is to make sure that people understand the facts and hear from both sides of the issue.”

Let NY Work: A Common Agenda for the Common Good is a historic effort led by a coalition of prominent business, local government and educational organizations. The purpose of the initiative is to advance a six-point mandate relief agenda aimed at helping stabilize New York’s economy and provide a sense of security for all taxpayers.

Working together with Governor Andrew Cuomo, I recently voted to approve a personal income tax cut for hardworking, middle income New Yorkers — bringing the tax rate to the lowest level in 58 years. 

This tax cut will help make New York’s economy more competitive, while also saving you money.  

Another good way to save money is to make sure that you take advantage of any deductions and tax credits that may be available.

With tax preparation season now underway, it’s a good time to make sure you get the facts you need to save money for you and your family.  A great resource is the NYS Department of Taxation and Finance website, which is loaded with information to help you file your taxes accurately, on-time, and in the most cost-effective way possible.  Simply click on the link below to visit their website, which includes information on: 

• The new personal income tax rates;
• Easy-to-use Free-File and e-File features;
• How to request an extension; and
• How to get your refund safely and quickly through use of a debit card or direct deposit. 

You can visit the New York State Department of Taxation and Finance website at http://www.tax.ny.gov.

As always, if you have any questions, my staff and I are here to help.  Please feel free to contact my office at (716) 434-0680 or e-mail me at maziarz@nysenate.gov and we’ll do whatever we can to get you the answers you need.

Sincerely,

Senator George D. Maziarz
62nd Senate District

2012 Business Person of the Year Lou Knotts, President & CEO of Calspan, stands with Deanna Alterio Brennen following his award acceptance.

The Niagara USA Chamber of Commerce held its annual Chamber Honors 2012 Awards Gala on Saturday evening, February 25, at the Seneca Niagara Casino and Hotel Event Center, 310 Fourth St. Niagara Falls, NY. 

The 2012 Business of the Year and Business Person of the Year were among the many achievements celebrated by the Niagara USA Chamber of Commerce during its dinner.  Community leaders and businesses of all sizes have gathered annually in Niagara County for this highly anticipated event.  This year the Chamber recognized the outstanding accomplishments of:

Modern Corporation – Business of the Year
Louis H. Knotts (Calspan) – Business Person of the Year
WNY Regional Economic Development Council – Visionary Award
Kathleen A. Granchelli (YWCA of Niagara) – Community Advocate of the Year
Stephen F. Brady (National Grid) – Chairman’s Award

The “Chamber Honors” is the Chamber’s most prestigious affair attracting Niagara County’s most prominent leaders, decision-makers, dignitaries and elite sponsors. The event featured a cocktail reception, dinner, awards ceremony and entertainment by Soul Committee. 

“Niagara County is very fortunate to be served by such dedicated and competent leaders who are a force in this community and strive to improve the quality of life and economic stability of our region,” states Niagara USA Chamber President, Deanna Alterio Brennen.

Steve Brady, 2012 Niagara USA Chamber Chairman's Award Recipient featured with Kevin Schuler, Chairman, Niagara USA Chamber

Community Advocate of the Year Kathleen Granchelli

Gary Smith accepted the Business of the Year Award on behalf of Modern Corporation

Christina Orsi, Satish Tripathi, Howard Zempsky accept the Visionary Award on behalf of the Western New York Regional Economic Development Council

Niagara County Legislature Deputy Majority Leader Dave Godfrey (l.) and Lockport Mayor Michael W. Tucker listen intently as Empire State Development Corp. Senior Vice President for Regional Economic Development Sam Hoyt answers a question posed by Niagara County Treasurer Kyle R. Andrews (r.). Godfrey, Tucker, and Andrews were among approximately 65 local government officials and community leaders in attendance Wednesday at a formal briefing on Gov. Andrew M. Cuomo's 2012-2013 executive budget delivered by Hoyt, a former Buffalo assemblyman.

Hoyt Brings Budget Session to Lockport

Top government officials from Niagara County, Lockport, and surrounding communities were on-hand Wednesday at Lockport City Hall to receive a briefing on Gov. Andrew M. Cuomo’s 2012-2013 executive budget from one of the state’s top economic development officials.

Sam Hoyt, the former Buffalo assemblyman tapped to serve as senior vice president for regional economic development at the Empire State Development Corp., addressed an audience of approximately 65 individuals, primarily representatives of local and county government, on the $132.5 billion proposed spending plan.

The final budget passed by New York state’s government will impact county, municipal, and school budgets in the form of mandated local spending and state aid. Local leaders have urged Albany to develop a mechanism to fully fund state mandates.

As part of efforts by the Cuomo Administration to build support for the budget, Hoyt and other top administration officials are delivering similar briefings in all 150 of the state’s Assembly districts.

Among the local leaders in attendance was Niagara County Treasurer Kyle R. Andrews, who thanked Hoyt for providing local government officials with the budget synopsis.

“I think a lot of us were certainly extremely pleased to see the continued efforts out of Albany to place fiscal constraints on their spending and to create an environment more conducive to local business and job creation—and with an eye toward reducing the cost of operations for local governments,” Andrews said. 

“I know that I’m particularly optimistic about the proposed freeze in Medicaid cost increases and the Tier VI pension reform, which target the two largest drivers of county cost from year to year,” Andrews noted.  “Addressing those two cost drivers is critical to making Niagara County more competitive when it comes to things like drawing employers to our region.”

Andrews, Lockport Mayor Michael W. Tucker, and Legislature Deputy Majority Leader Dave Godfrey spoke directly with Hoyt after the briefing, relating local concerns about major cost drivers, and reiterating local support for reducing the local share of Medicaid and pension funding.

Niagara County lawmakers received the first segment of a two-part annual briefing on the state of the county’s economy and economic development efforts from the men tasked with leading the herculean effort to keep Niagara County’s economy growing against the backdrop of a weak national economy Tuesday night.

County Legislature Economic Development Committee Chairman Rick Updegrove, R-Lockport, and Niagara County Industrial Development Agency Chairman Henry M. Sloma delivered the address, which clocked in at just under 20 minutes, highlighting both economic development successes in 2011 and laying out part of the county’s strategy for 2012. 

When the Legislature meets again in two weeks, Updegrove will flesh out that strategy fully in a second half to tonight’s address.

“Functioning as the Niagara County Center for Economic Development, the Niagara County Department of Economic Development and the Niagara County Industrial Development Agency have achieved many successes for Niagara County,” Updegrove told a packed Legislative chamber, with county legislators, department heads, and approximately 50 spectators on hand for the address.

Updegrove then reiterated the core mission of the county’s Economic Development Department.

“The Department of Economic Development has obtained grants to clean up brownfields, turned underutilized land into certified shovel-ready development sites, participated in the work of the Western New York Regional Economic Development Council ensuring that Niagara County received its fair share, and worked with local municipalities to promote sustainable development,” Updegrove said.

“The Niagara County Industrial Development Agency has put specific emphasis on our urban cores through the Opportunity Zones program, retained large manufacturers, helped companies expand, and attracted new businesses to Niagara County,” Updegrove said, summing up the agency’s successes in 2011.  “The NCIDA has expanded the number of jobs and opportunities available to Niagara County residents, and will continue to do so in the year ahead.”

2012 Economic Address for Niagara County

Recently I submitted the 2012-2013 Executive Budget and Reform Plan to the Legislature. Because of the tough choices we made last year, we were able to balance this budget without broad cuts and with no new taxes, fees or borrowing.

Our plan is a pro-growth economic blueprint that will create tens of thousands of jobs by fostering private sector investment. It will lower the cost of government and help reduce property taxes through important proposals like pension reform and mandate relief. And it will move our state to a performance-based education system that puts students first.

We are proposing dramatic change and it’s not going to be easy to get it done. The need for reform and the benefits to the state are obvious, but we will face significant challenges as we work to change the status quo.

But with your help – if we come together as New Yorkers as we did last year – we can make these reforms reality.

Join me in transforming New York.

Sincerely,

Governor Andrew M. Cuomo

Follow the link: 2012 Budget Address January 17, 2012

Governor Cuomo understands that our state’s high property taxes are driving people from their homes and businesses. That is why he made lowering property taxes a top priority and, last year, he led the successful fight to enact the first-ever property tax cap in the state.

We now need to relieve local governments of burdensome state laws that drive up their costs. That’s why the Governor is proposing sweeping reforms to lower the cost of government by removing state-imposed mandates.

Among the proposals is relieving counties and NYC from the costs of Medicaid growth. The Governor has proposed a state takeover of the costs of Medicaid growth over the next three years. This would save local governments $1.2 billion over the next five years.

We also have to focus on reforming the public pension system — one of the most expensive mandates for local governments. Pension costs are growing at an unsustainable rate, projected to increase 185% from 2009 to 2015.

We must act now to control growth. That’s why the Governor has called for changes in the public pension system for new employees. This would save local governments $79 billion over the next 30 years.

The Governor’s pension reform plan is fair to employees and taxpayers, and no current employees will be affected by it.

Click here to learn more the Governor’s proposals for pension reform.

To engage the public in discussion about further changes to lower government costs, a joint Legislative Executive Mandate Relief Council has been established and begun meeting. It will hold public hearings around the state and then issue a package of recommendations to be voted on this legislative session.

Join Governor Cuomo in making the government work for the people again: Click here to encourage friends and family to get involved.

Together, we are Building a New New York.

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