Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. This is the news you need to know in the fight for a secure retirement.
Pension Reform Movement Grows in New York State
Public employees have had enough of the negative ramifications Tier 6 of the New York State and Local Retirement System (NYSLRS) has had on morale, staffing, and the ability to deliver services. This week, a crowd of over 15,000 pension advocates gathered to deliver that message to lawmakers in Albany.
Sam Fresina, President of The New York Professional Fire Fighters Association, spoke out, saying, “At least 65% of our members right now are Tier 6. They are separate from our Tier 2, Tier 4, Tier 5 members riding the same tailboard, going to fight the same fires, putting their lives on the line right alongside each other, and they’re treated as second-class citizens.”
Aside from firefighters, teachers, paraprofessionals, nurses, police, and other state and local workers, all fall into Tier 6. Tier 6 employees are aiming to adjust the minimum years of service and age requirement for retirement to match earlier tiers. Currently, Tier 6 workers need to reach age 63 and have 40 years of state service to retire with their full benefit amount. Tier 4 workers only need to work until age 55 with 30 years of service.
Arizona Governor Addresses Financial Blowback from Public Safety Shortages
The Arizona Department of Public Safety got a financial boost from Governor Katie Hobbs this week, following her authorization to release $1m in government funds, sourced from “savings from operational efficiencies,” to help cover overtime payments.
Earlier this year, the Arizona State Troopers Association requested a sum of $6.4m for various needs, including outstanding overtime debt and critical vehicle and equipment upgrades. With a current shortage of 483 officers, the Arizona DPS has been struggling to properly staff areas in need–leaving some officers with no option for backup, and some communities with no 24/7 law enforcement.
Arizona Republicans have presented a bill that would grant the DPS the requested $6.4M. House Bill 2993 would pull the funds from an anti-consumer fraud fund used by Attorney General Kris Mayes–a move that others in the legislature oppose.
Jeff Hawkins, president of the ASTA, said, “While the $1 million will certainly help address some immediate overtime needs, the Department is still facing broader funding challenges that will require additional resources to fully stabilize operations and support our troopers in the field. For that reason, I would still support the governor signing HB 2993.”
Oklahoma Lawmakers Grapple With Senate’s Education Spending Proposal
Mixed reactions abound since the Oklahoma Senate Republicans released a controversial budget proposal that would redirect $254 million originally intended for the state’s Teachers’ Retirement System (TRS) to fund an education package that includes an expansion of the state’s Parental Choice Tax Credit. Senate leaders argue that the pension system, which just reached 80% funded status after decades of struggling to recoup losses from previous funding cuts, can afford the proposed contribution slash.
The repurposing of retirement funds is under scrutiny by several labor organizations, including the Oklahoma Education Association and the Oklahoma Retired Educators Association. Noting that retired educators have not seen a cost-of-living increase since pre-COVID, the OREA released a statement saying, “An 80% funded ratio is meaningful progress — but it is not full funding. Redirecting retirement dollars now risks reversing years of hard-earned stability.”
House Speaker Kyle Hilbert spoke about the pension subsidy the state enacted to shore up the previously raided TRS, saying to reporters, “At some point, the subsidization of the pension systems, the TRS system, will need to go away. It’s just a question of is that (happening in) 2026, is that 2030, or 2034?”
Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.