FOR RELEASE:

State Comptroller Thomas P. DiNapoli Statement on Tier VI

 The agreement reached between the Governor and the Legislature on Tier VI will reduce pension costs for new employees. But this new tier will not significantly lower costs for local governments in the short run. I am pleased that it does not include the inadequate 401k-style plan originally proposed. My office will be reviewing the specifics of Tier VI in the coming days and provide guidance to municipalities on implementation.

There is no quick fix to addressing rising pension contribution rates driven by the financial market meltdown in 2008-09. Despite strong investment returns and two new pension tiers in less than three years, these rates will likely continue to increase in the near future.

New York has one of the strongest, most sustainable pension funds in the country because it has been managed and funded responsibly over the years. As State Comptroller, it is my job to ensure that this continues.