State Pensions Guaranteed by NYS Constitution: Clarification from State Assemblywoman Amy Paulin
- Details
- Hits: 4940
Here is a letter from Assemblywoman Amy Paulin with details about the Retirement agreements for NYS employees: I've confirmed with the Thomas Nitido, the Deputy Comptroller for the New York State and Local Retirement System, that it would be unconstitutional for the Legislature to reinstate the 3% employee pension contribution for Tiers 3 & 4 following completion of 10 years of service. The benefits provided are constitutionally protected and cannot be diminished retroactively by the Legislature or by the courts. My understanding is that even if local officials were able to negotiate obtaining some additional contribution by employees, there would be no mechanism by which such additional contributions could be paid into the State retirement system (the retirement system legally cannot accept employee contributions after 10 years of service). While it is possible that an employer might be able to negotiate obtaining contributions from its employees, i.e. in the form of a wage reduction, to help the employer pay its pension costs, it is difficult to imagine how that would in fact occur. (For example, the pension benefit is a constitutionally protected right of the individual employee yet the additional employee contribution/wage reduction would be negotiated by the collective.) If such an agreement were challenged in court, it is possible that the courts would view this as an end-run around the unconstitutional diminution of the employee's benefits.
Note that I understand you may have learned that years ago the State Comptroller unilaterally eliminated the mandatory employee contribution after 10 years of service. To clarify, in 2000, the Governor signed into law legislation that, among other things, required employees enrolled in Tiers 3 & 4 to make 3% contributions until the member accrued 10 years of service. (When those Tiers were first established, employees had been required to make such contributions for the duration of service.) I understand the State Comptroller advocated for the changed but he could not, and did not, effectuate the change in the law nor could the Comptroller do so now.
I have been very sensitive to the fiscal pressure on local governments and school districts resulting from the onerous increases in pension costs, and continue to advocate for mandate relief and to look for other ways to reform the system to ease the burden on local governments and school districts. In the last 3 years alone, the Legislature has established two new Tiers, Tier V and Tier VI, requiring, among other things, increased employee contributions for the duration of service, limits on benefits paid and limits on the amount of overtime included in wages for purposes of calculating benefits. (It had been almost 30 years since the last Tier (Tier IV) had been established.)
In an effort to reform the system, I am currently a co-sponsor on 3 bills:
· This bill requires the State to pay pension costs in excess of an up to 2% increase in pension costs to municipalities and schools (no bill number yet).
· A. 5105. This bill freezes the current retirement tier of all elected officials and non-civil service appointed employees in New York State, and creates a new defined contribution plan for all elected officials and non-civil service appointees in New York State.
· A.5206. This bill creates a defined contribution plan for employees hired on or after April 1, 2012. This plan would be optional for all employees, with the exception that newly elected officials would be deemed mandatory member.
Governor Cuomo: Fiscal Hero or Grandstander?
- Details
- Written by: Joanne Wallenstein
- Hits: 4507
It's been a wrenching budget season for both the Scarsdale Schools and Village – with administrators making painful decisions about what to cut ... and risking public censure if they dare to propose adding enhancements that will further increase the budget.
Our leadership has been backed into a corner, trying to continue to provide the first rate education that brought most of us to Scarsdale as well as the excellent municipal services that we used to take for granted but now hold dear. Could it really come to pass that we will no longer have our garbage picked up? Will we now pay for water as well as a sewer fee for what's flushed out? Will there continue to be fireworks on the fourth of July? At school we're praying that our kids are not the ones to end up in the oversubscribed classes or find themselves eating lunch on the floor due to overcrowding in the cafeteria.
Residents are pointing fingers at administrators, board members, managers and each other. As Village Manager Al Gatta said, "everyone wants everything and no one wants to pay for it."
Sitting through these disturbing public budget forums I realized that we should stop putting the blame on our leaders in Scarsdale and direct it north to Albany where the blame is due.
Last year, our Governor won kudos when he passed a 2% tax cap, promising to bring relief to taxpayers. To some Westchester County residents, who have the honor of paying the highest taxes in the country, this was welcome news. They hoped that the village, the schools and the county would tighten their belts and pass the savings along to residents.
And they have tightened their belts, and squeezed the skin underneath.
In fact, the only group that failed to trim their costs was New York State, the same legislators who passed the tax cap. Rather than cut back on their budgets, they mandated wild increases in pension and retirement costs for municipal employees, and school personnel making a 2% tax increase laughable. Cuomo promised pension reform but failed to deliver. The state is requiring municipalities and school districts to make up for investment losses in the pension fund, asking for increases that far outstripped the 2% cap. In addition, Cuomo failed to negotiate with the unions to ask for increased employee contributions to the fund and for defined contribution plans rather than a defined benefit plans that guarantees employees a set payout despite the ups and downs of the market.
Cuomo has failed to take the unions on and passed the buck to local administrators and managers to make them look like inefficient spendthrifts.
How big are these increases in pension and retirement fund contributions? In both the Scarsdale Village and Scarsdale School budgets, these increases assume the lion's share of budget growth:
In the budget for the Scarsdale Schools, payment for the Teacher's Retirement Fund is estimated to go from $7,418,899 in 2012-13 to $12,173,493 in 2013-14, an increase of 64.09%. The Employee's Retirement contribution will leap from $2,538,377 to $4,013,220 or 58.10%. These increases account for 80% of the projected growth in the proposed $146,000,000 school budget.
At the Village, in the last four years from 2010-2011 to 2013-2014, the Village pension contribution has grown from $2,219,916 to a projected $4,827,665 for 2013-2014, or an astronomical 117.5%
In March 2012 the state did pass regulations for new employees that require them to contribute from 3% - 6% of their salary to their retirement fund and increased the retirement age from 62 to 63. It also reduced retirement benefits for those retiring before age 63. However, this did nothing to change the pension contributions for current employees so it will be decades before this new legislation has a significant impact.
We ask Assistant School Superintendent Linda Purvis if teachers and staff contribute to their pensions and here is her explanation:
"Some teachers and staff contribute; the majority do not. It depends on when you joined the systems. If you have less than 10 years of membership in the two retirement systems (teachers and employees) and are in Tiers III and IV (the largest tier) then you contribute 3% of your salary. Once your 10-year membership anniversary occurs (i.e., you joined September 1, 1998, and it is now September 1, 2008) you stop contributing. (A very generous gift from Governor Pataki and the NYS Legislature, as the original requirements of Tiers 3 and 4 were that the 3% contribution continued for the duration of employment.).) People hired before 1975 have never contributed anything towards the pensions, but those employees are mostly retired at this point. Recent hires may be members of the new tiers (5 and 6) and they contribute up to 6% of their pay (sliding scale) and have less generous pensions.
We also asked Scarsdale Village Manager Al Gatta whether the Governor has the power to force the unions to change the terms of their pension agreements to require current employees to contribute to their pensions. He said, "The question is whether it can be negotiated. When the 3% employee contribution was eliminated it was done by the Comptroller unilaterally and many people including myself were surprised because there was no reason for it. Thus the theory with some people, including me, is that the Comptroller can reinstitute it. Others believe that once the 3% relief was granted it has now become a constitutional issue as to whether it can be taken away."
In addition the state offers a defined benefit plan that guarantees a specific payout at to retirees despite the ups and downs of the market. Most private employers offer a defined contribution plan where the employee directs their investments in their retirement fund and benefits vary depending on the market.
We asked Purvis for her take on what could be done to solve the problem and here is what she said:
"I believe that in an ideal world every employee who belongs to these systems should contribute from their paycheck, as these plans provide a rich benefit. (Membership in the systems is mandatory for full-time employees.) Discontinuing the 3% contribution for Tiers 3 and 4 after 10 years was irresponsible, to say the least. It left employers shouldering the full impact of cyclical fluctuations in the financial markets. Ideally that contribution would be reinstated. Even better would be contributions that were adjusted annually just as employer contributions are. Currently I don't think that is possible under state law, but it's what makes sense.
Recent hires (Tier 6) as noted above contribute more, and have less generous pensions. The impact of this change will ultimately be substantial, but won't be felt by employers for a while.
Defined contribution plans are a popular idea and they would certainly stabilize employer costs. But I am very concerned at the idea of allowing employees who may know nothing about investments to manage what will be, at the end of their working years, a sizable amount of money that they will live on for the rest of their lives. Wall Street will sell them products of dubious value and/or charge them substantial fees to manage their funds. (We already see that happen with 403b plans and our employees.) So these plans can make employees vulnerable. A defined contribution option was added to Tier VI for higher-salaried employees, but it is not mandatory.
I think the key to managing the defined benefit plans is not to discontinue them but to share the pain more equitably between employers and employees. Individual school districts cannot change the way the plans work - we are charged based on a statewide rate - but that is something that should be taken up at the state level."
This year the 2013 state budget included no pension reform. When asked about the issue on March 8, 2013, Cuomo's response was nonsensical. He said, ""By definition, the unions don't want a reform that would diminish pension benefits, so the answer's always going to be, 'No.'"
Is Cuomo shying away from taking on the unions as it risks his political future or does he really have no more chips to trade with the unions?
In my view, rather than pressure our local officials to make even deeper cuts to our local budgets, let's put the pressure on Governor Cuomo. He owes it to the taxpayers to take on the unions and break this impasse. It's time for Cuomo to trade in some of his chips rather than put our local municipalities and schools in jeopardy.
Bob Steves Sworn In as 52nd Mayor of Scarsdale
- Details
- Hits: 3833
Vowing to make Scarsdale a better place to live, Bob Steves was sworn in as the 52nd Mayor of Scarsdale at Scarsdale Village Hall on Monday afternoon April 1. In a very brief statement, Steves said he was "energized and encouraged by everyone who volunteers" and said, "what we do individually and collectively makes Scarsdale a better place to live."
Thomas Martin was also sworn in to a first term as Village Trustee by Village Clerk Donna Conkling. Trustee William Stern and Trustee Stacey Brodsky were out of town and will be sworn in privately at Village Hall.
Wellness Center Proposal Sparks Controversy Among High School Students
- Details
- Hits: 14469
This article was submitted by Scarsdale high School freshman Carly Glickenhaus: Every year at this time there is a whirlwind of news about the efforts of the Board of Education to appease many constituencies while formulating the following year's budget. It seems to me that our village aims towards perfection and seeks to uphold its reputation by constantly improving. Every year we take another step towards the city we strive to be. This year is no different as Scarsdaleʼs proposed next step is a new, $975,000 "Wellness Center" at the High School.
SHS currently has a fitness center located off the main hallway that leads to the athletic wing, the site of the gyms and locker rooms. Because of its obscure and somewhat hidden location, the fitness center is neither well-known nor widely used, except by Raiders teams and a handful of individual athletes. Its use is not well advertised nor promoted in physical education classes. In fact, some students were completely unaware of its existence. In a small random poll of SHS students, 44% said they have not used the current fitness center and are not interested in using a new one. Therefore one could ask, if the current fitness center is barely used, why do we need a new one?
The proposal to build the new Wellness Center is controversial because while some are excited to see a new training center for 
Scarsdale athletes and are willing to fund it, others believe that the existing fitness center is adequate and argue that the proposed 4.78% tax increase is excessive. Each May, taxpayers are forced to question how deeply they are willing to dig into their pockets and for what purposes they want to see their hard-earned money used. Many residents believe that there are wiser ways the school system could use tax revenue. If the Board of Education is willing to build a Wellness Center, why not an indoor pool at the school? Can the funds be spent to build facilities that can be enjoyed by a larger portion of the community? Others proposed using the funds for new language programs, new clubs and intramural programs, more field trips, smaller class sizes with more teachers, more computers, a larger cafeteria, a quiet common area, and a larger library. To many, these things are a higher priority and should be a primary focus in future years.
Proponents for the Wellness Center contend that it will be used by Raiders athletes and non-athletes alike. In their view, the current fitness center is relatively small. A large, new facility, in a different location, would attract more students and females as well as the males who now dominate the fitness room. They argue that students would use the new Wellness Center because a state-of-the-art, fresh, new space is always more appealing than an old, uncomfortable one.
On May 21 taxpayers, not students, will vote on the proposed budget. However, it is the students for whom the decision is being made and their opinions are extremely significant. When surveyed in the informal poll, 42% of students favored the new Wellness Center and if this percentage is applied to the entire student body it indicates that 670 out of the 1,600 students would try the Wellness Center. Only 14% of those surveyed find the current fitness center sufficient and believe a new Wellness Center is unnecessary.
In speaking to SHS students some mentioned that the school already has three full-size gymnasiums, Dean field, Butler turf, and a quarter mile track, all in impeccable condition. The school is fortunate to have these resources, which rival comparable districts. Whether or not the expenditure is necessary or wise at this time will ultimately be decided by the voters in May. From my survey and discussions with the student body I can conclude that opinion on the Wellness Center is divided, leaving the matter up to the parents to decide.
Carly Glickenhaus is a freshman at SHS, a soccer player, diver, and a distance runner on the Raiders Track & Field team. She also enjoys writing and photography.
Scarsdale Administration and Board Answer Questions About the Proposed 2013-14 School Budget
- Details
- Hits: 6037
Scarsdale School Superintendents and the leadership of the Scarsdale School Board came before the membership of the Scarsdale League of Women Voters on Monday March 18 for a frank discussion of the proposed $146 mm school budget for 2013-14. Led by LWVS School Budget Chair Pam Rubin, the panel reviewed the fund balance and the use of reserve funds, the proposed Wellness Center, long-term district plans, capital improvements, school security and staffing.
Superintendent McGill emphasized the challenge faced by the district, saying, "Everyone wants everything and low taxes too," and told the group that in the past five years "all of the easy savings have been wrung out" of the school budget. With 80% of the proposed budget increase mandated by the state to cover pension and retirement costs, the district has little leeway to invest in new initiatives and improve the school plant.
Assistant Superintendent Linda Purvis reviewed the district's fund balance and the use of reserves to 
fund the budget. She distributed numbers showing that the total fund balance peaked at $18.9 million in 2009-10, allowing the Board to use approximately $6 million a year, from 2008 – 2012 to fund the following year's budgets. Last year the Board made a decision to reduce their reliance on fund balances and draw down these funds. Consequently the 2012-13 budget includes $4,200,000 in reserved funds and for 2013-14 the Board is proposing to include $2,550,000 of reserves. Purvis explained that this reduction in the inclusion of reserves in the 2013-14 budget is the reason why the district's tax levy growth is 4.78% which is larger than the budget-to-budget increase of 3.11%.
Dr. McGill offered background on the proposal for a new Wellness Center to be built underneath the high school gym and explained how this fits into the district's long range planes. Though the Board included $350,000 in funds to renovate the existing fitness center in the 2012-13 budget, meetings with architect Peter Gisolfi convinced the administration that this was not in the best interest of the school. McGill explained that the space now occupied by the fitness center abuts both the high school cafeteria and the library and could later be used to increase the size of these overcrowded resources. Furthermore, the configuration of the current fitness center is tight and dark and would never be an optimal space for the placement and use of large fitness equipment. (Tours of the space are available through the Scarsdale High School P.T.A.)
According to McGill, moving the fitness center to the space underneath the gym answers many of the school's needs:
- Removes the fitness center from an undersized area
- Moves it to a larger, user friendly, open space
- Moves it to a more logical space near the lockers rooms and the gym.
- Creates a new space that is currently not in use.
- Opens up the space now occupied by the fitness center for future renovation
- Provides room for more flexible learning space, additional library space, additional cafeteria space, or a "makers space" for innovation.
Questions also arose about how students' dining needs would be met when 90 additional students enter the high school next year. According to Purvis, the high school will address crowding in the cafeteria by doing the following:
- Creating a third lunch period so that some students will eat during fourth period
- Adding additional seating to the cafeteria
- Adding seating and perhaps food service to the commons area
- Remove an existing office to accommodate more dining near the commons
Purvis explained that the construction of the new fitness center was the first piece of a long term, $22 million plan proposed by architect Peter Gisolfi in a review of the high school and all of the district's buildings. With interest rates at historic lows, Purvis said that the district might consider funding plant repairs and improvements with a bond – however this is not currently on the table.
Purvis distributed a list of proposed plant improvements that have not been included in this year's budget, but will need to be done sooner or later. Among the biggest ticket items were replacement of half of the flat roofs at Quaker Ridge School at $400,000, the renovation of Dean Field at $500,000 and the replacement of the turf field at the high school at $700,000.
Assistant Superintendent Joan Weber reviewed proposed staffing changes for the district including an increase of 3.4 civil service positions and a decrease in 4 teaching positions. Here are some notable items:
-There is one unassigned teacher in the budget – this position could be used at the high school pending student's class enrollment choices for next year.
-An English teacher has been added at the high school to accommodate increased enrollment
-A full time performing arts teacher will be added at the high school to replace the part-time teacher who is retiring.
-In response to increased use of technology in the schools two tech support positions have been added. The new staffers will free up the computer teachers to offer instruction rather than support. More students will be using personal devices and tech repair and support will be necessary, One of these positions is for a network administrator to accommodate increased use technology in the schools.
-Also proposed is a more controversial addition to the staff. The administration would like to hire a Communications Officer to update the website and maintain communication with students, teachers, parents and the community at large. They believe they need a person with greater skills and abilities to communicate with the public in a 
timely manner and maintain transparency.
-Three security officers are budgeted for the high school where an open campus makes it difficult to monitor traffic in and out of the school. The district is also considering outsourcing this function by using personnel from a security company.
-Two librarians will be eliminated – one at the middle school and the other at the high school. According to Weber there are many high quality library aids who can fill in, some whom are currently pursuing masters in library science.
-At the middle school, one Family and Consumer Science (formerly home economics) position will be eliminated through attrition. Both Maureen Ball and Dawn Rivellini have announced their retirements and only one will be replaced.
-A middle school math teacher will be reassigned to the high school.
-At the elementary schools, the district wide kindergarten dance teacher position will be eliminated and a half-time learning resources teacher will be eliminated in response to a decrease in the need for services.
Overall, there will be 21 staff retirements this year and the district is considering changes to personnel needs as these retirements occur.
School Board President Liz Guggenheimer reiterated that this is a period for dialogue on the preliminary budget and that she looks forward to receiving feedback on the budget at subsequent School Board meetings on April 8 and April 22.
