New York State’s $16,000 annual retirement pension will be replaced by $25,000

  • July 5, 2021

New York City has agreed to a plan to replace its $16.7 million annual pension with a $25 million one.

The New York Assembly voted Tuesday to approve the retirement package for retired teachers, firefighters, and other city employees, which will be made public in January.

Under the plan, retired teachers will get a $11,000 retirement benefit that will be phased out over five years, starting in 2024.

That retirement package includes a $6,500 annual salary increase.

At the same time, the state is phasing out the state’s $25 billion pension fund for state employees, who will get only $4,000 a year from their pension.

This retirement plan will allow the state to keep its money flowing and will provide for continued funding for public education, including through the $7 billion state budget, said Assemblyman Chris Taylor, a Democrat from Queens.

In addition, the plan will increase state and local taxes to $2,000 for everyone and $4.50 for families with incomes under $75,000, and add a tax on corporate profits above $2 million.

While the state pension fund is funded through taxes, the new plan will be financed through an increase in sales and property taxes, said Councilwoman Linda Spota, who also represents the city.

“If we are going to keep the state afloat, we need to invest in the people who are making this work,” she said.

New York is the only state in the nation that doesn’t provide its state workers with a guaranteed pension.

About 15,000 New York state workers earn an annual pension.

The plan, which has been under consideration for several years, was approved by the state Senate in February, and was the subject of a push to have the state act on the pension.

But Governor Andrew Cuomo said at the time that he would veto the bill because it would be unfair to the state retirees.

If we want to do this, we have to make the best of what we have, Cuomo said in February.

We can’t continue to let this happen, he said.

The deal with New York is a win for the city and the state, but it’s not perfect, said City Councilwoman Mary Pat Clarke, a Republican from Newburgh, New York.

It also doesn’t take into account that New York has a large number of retirees, Clarke said.

As for how the pension changes will affect future pensioners, Clarke says the city is working on a plan that will address the issue.

We have a lot of retirees who will be affected by this, Clarke added.

We are looking at a very, very, comprehensive plan.

Clarke said she expects the city to release a new plan by the end of the year.

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