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     Current Issue Highlights Highlights Archive             Get to know your Business Agent today!  Find out how the union makes a difference on the job. |
Newsline: August 2000 BIG PENSION WIN FOR LOCAL 237 MEMBERS It took several years in the making, but just before the close of the session in Albany in June, Albany law makers and Governor Pataki finally agreed with union leaders that it was time to upgrade the City and State pension plans. "Local 237 members can claim victory for the legislative gains we wrestled from our State Legislators and the Governor," said Local 237 President Carl Haynes. "This package was not handed to us on a platter, we fought very hard for it over many years and refused to let it go because we believed that the current systems were outdated and unfair to our members." Members can now look forward to getting more money in their pockets, equivalent to as much as 3 percent in some cases, as a result of improvements to your pension plan, and the Cost of Living Adjustments (COLA) Act 2000 for state and city retirees. Haynes added that "Our success on this issue is also a testament to our ability to turn out members for rallies and demonstrations outside City Hall and in Albany. As a result, we can truly say we won historic improvement in pension benefits for public employees and members of the retirement systems." Haynes praised the unions affiliated with the New York State AFL-CIO, including Local 237, for putting up a united front throughout. "These pension changes were long overdue" said Patricia Stryker, Local 237's director of Political Action and Legislation. Ms. Stryker had served on the team -- the State AFL-CIO's Public Employee Pension Task Force -- that was formed to strategize and lobby the leaders in Albany on the pension changes. "It always helps when you have legislators and the executive on your side who understand the issue and work with you to get the bills through both houses. It reaffirms what we know all along, that we must remain politically active," she added. Here's how Members benefit from the pension package: Pension Enhancements Every member will benefit from the pension enhancement bills passed by both the Assembly and the Senate. This bill provides that: Tiers 3 and 4 members, who have 10 years or more of membership in a retirement system, will no longer contribute their 3% to the retirement system. This applies to part time workers as well. Tier 1 and 2 members will be eligible for additional service credit of one month for every year worked, up to a maximum credit of 24 months. This applies to all Tier 1 and 2 members who are on payroll through October 1, 2000, and continues permanently. The current cap of 75% earnings for retirement is waived for Tier 1 and 2 members under this legislation. This benefit can also be in addition to any early retirement benefit offered under state legislation. Tier Equity.Reduces Tier 3 and 4 penalties for early retirement to Tier 2 level. New Tier 3 and 4 Penalties -- 6.0%, instead of 6.67%, for each of the first two years of retirement before age 62, plus 3.0 percent, instead of 5.0% for each year between age 55 and 60. COLA Cost of Living Adjustment is now permanent and automatic for retirees age 55 and retired 10 years; age 62 and retired 5 years and disability retirees retired 5 years. COLA is applied to annual pension. There is a guaranteed Minimum Annual Increase of 1% and a Maximum Annual Increase of 3%. Payment for the first annual COLA will begin September 2001. Also, there is a provision in this bill that allows for long term retiree catch-up (measured from the year of retirement through calendar year 1997). This is a significant chunk of change for our retirees. This is payable beginning September 2000 at 50% of Consumer Price Index (CPI) since retirement until 1/1/97. Death Benefits Allows Tier 2, 3 and 4 members of the NYSLERS and beneficiaries to receive the greater death benefit provided under another option. Applies to those joining before January 1, 2000. This benefit is effective immediately. Veterans Buy-Back Members with honorable discharge may obtain up to 3 years credit for the following conflicts: December 7, 1941 to December 31, 1946 June 27, 1950 to January 31, 1955 February 28, 1961 to May 7, 1975 Lebanon - June 1, 1983 - December 1, 1987 Grenada - October 23, 1983 to November 21, 1983 Panama - December 20, 1989 to January 31, 1990 August 2, 1990 to the end of hostilities in Iraq, Kuwait, Saudi Arabia, Bahrain, Qater, Persian Gulf, etc. (must be in the arena of action.) Members must have 5 years credited service to apply and must apply before retirement becomes effective. Must also have to pay 3 percent of compensation (12 months prior compensation, prior to time of applying) for each of the year you are claiming). Prior Service Credit Allows members to receive credit for service that would have been creditable in one of the public retirement systems of the state if the individual had been a member at the time service was rendered. To qualify, the member must have rendered at least two years of service since last joining the system. Currently, a member must render five years of service before such previous service can be credited. Members would still have to pay for purchasing this credit and can make payments by payroll deduction. Obviously, the improvements represent major changes to your pension benefits. Members who are unsure of their benefits and/or eligibility should talk to their business agent or call the union. If you plan to retire anytime soon, now would be a good time to make an appointment for pension counseling with the union's Retiree Division. |
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