Results tagged “pension”

At least four Albany legislators are collecting sweet pensions on top of their annual salaries, including one Assemblyman who sponsored legislation last year to crack down on state workers for the same practice, known as "double dipping." Seventy-five-year-old Assemblyman Harvey Weisenberg (D-Long Island) technically "retired" last year but continues to "work" at the state capital, where you're paying him $101,500 in salary plus a pension of about $72,000. Forget it Jake, it's Albany, where it's perfectly legal for veteran lawmakers to "retire" at 65 and start collecting pensions, but without actually leaving their jobs, giving up their salaries or even telling their constituents.

In this case, double-dipping doesn't refer to a George Costanza-like social faux pas—it's the more serious instance of a retired city worker who collects his/her pension PLUS pay from a new public job! The Daily News reports, "New city audits have found 39 city retirees double-dipping with new public jobs - and pulling in some $600,000 in improper pension payments," such as "a retired assistant district attorney collecting a $69,660 pension on top of a $99,100 consulting contract for the state courts... a retired police captain who earned $51,246 as a city teacher on top of a $55,622 pension and a retired teacher with a $55,882 pension who also worked an FDNY office job for $76,490." Nice work if you can get it! The News further explains that retired city employees cannot receive pension payments if they take "another city or state job, though some are allowed to do so if they obtain waivers." City Comptroller William Thompson said, "Immediate action ... is needed to investigate and recoup, if appropriate, any improper payments made to these retirees identified as possible 'double-dippers.'"

This fall, teachers will no longer have to arrive two days before students and prepare their classrooms, because the deal the United Federation of Teachers struck with the Bloomberg administration allows them to return on the same day as students, as part of a deal to save $2 billion in pensions. Of course, the principals are upset: PS 321 (Brooklyn) Principal Elizabeth Phillips asked, "Do parents want their children coming into rooms where furniture is stacked up and materials packed away?"while PS 221 (Queens) Principal Sheila Twomey said, "You don’t want to picture what it was like if a child comes to school and there’s nothing up around the room, you’re trying to find your pencil and everybody else around you is disorganized." And principals union president Earl Logan said the before-school's start meetings were helpful to integrate new teachers. UFT outgoing president Randi Weingarten pointed out that requiring teachers to arrive on the Thursday and Friday before Labor Day (school starts on the Tuesday after Labor Day) violated a 2005 labor agreement and said that the new deal could allow Schools Chancellor Joel Klein to simply move the students' start date to be two days later.

While Mayor Bloomberg and his staff have warned that the city's pensions could cripple the city's finances, the NY Times reports, "Interviews and budget records show that the Bloomberg administration itself is responsible for much of the growth in city pension costs over the last eight years, and has repeatedly missed opportunities to rein in the spending. A major reason: the mayor has given the city’s 300,000 workers generous pay increases, guaranteeing that they retire with bigger pensions, which are typically 50 percent of salary. Such raises force the city to make heftier payments to the pension system now." The city's contribution to the pension system is $6.2 billion, up from $1.4 billion in 2002. The mayor's office defended the pay raises as incentives for workers to be more productive and pointed out that the stock market's downturn means the city pays more. In other pension news, Bloomberg negotiated a new pension deal with the teacher's union that saves $2 billion over 20 years.

State Comptroller Thomas DiNapoli announced today that the NY State pension fund fell 26.3%, with its value now $109.9 billion. The global economic crisis contributed to the decline, and Crain's New York reports, "It isn’t clear what percentage of the decline is due to souring private equity investments, but the fund had about $11 billion worth of such investments and $4.5 billion of “absolute return” investments—also known as hedge funds—according to the previous fiscal year’s annual report. That’s about double the amount held in 2005." However, DiNapoli also said the pension fund is "built to survive even the most challenging investing environments. For example, the Fund saw the value of its assets decline by about $30 billion in the markets that followed the dot-com bust and the Sept. 11, 2001 terrorist attacks, only to see steady recovery in the subsequent years." However, in order to meet future retirement obligations, employers and taxpayers will give greater contributions.

At first, we thought this Bloomberg News lede was from The Onion: "The New York Lottery is proposing a gamble where the odds aren’t always in its favor -- moving its $1.3 billion prize fund into investments such as stocks, corporate bonds, real estate and hedge funds and out of the safety of U.S. Treasuries." But it turns out lottery officials are really considering the risky move in order to increase revenue, as the state faces a huge budget deficit. Lottery director Gordon Mendencia tells Bloomberg News, “We’re not going to be wild and crazy with investments" and is looking for “solid investments, like a pension fund or endowment" that will perform well, versus the Treasury bonds that have been yielding very little. If the NY Lottery did switch to higher-performing investments, it might be able to reduce the lump sum payments given to winners and free up money for state education funding. One lottery enthusiast is okay with that: "If I win $30 million, it won’t break my heart if the cash prize is $18 million instead of 20.”

A nice followup to that online database that allows you to look up the base salary of city employees: City employee pay and benefits have risen 63% in the past 8 years, according to the Citizens Budget Commission. Check out the chart above—you'll see that pay has gone up an average of 33%, while health insurance has gone up almost 100%. In private industry, between 2000 and 2008, salary + benefit compensation has only increased by 31% (salaries by 32%, other benefits by 40%).

The NY congressional delegation had "very productive" talks with the U.S. Railroad Retirement Board to discuss reforms. Last month, the NY Times found that since 2000 virtually all LIRR employees applied for--and received--disability payments, raising questions about the USRRB's approval process (the board grants pensions). Newsday reports the USRRB is considering including "independent medical doctor to review disability claims; better oversight of the board's Long Island district office; and a re-evaluation of past LIRR retiree disability cases." Senator Charles Schumer said, "If somebody gets disability [benefits] and is then out playing golf five times a week, they ought to not have them," and added, "We all know something is rotten in Denmark."

An unidentified female NYPD officer with HIV, named Jane Doe in court papers, is suing the city for denying her the tax-free "line-of-duty" disability benefits awarded to other male cops with HIV. Court papers obtained by the Daily News reveal that four male officers have been granted the full, tax-free benefits after contracting HIV in the line of duty: One who reached into a perp's underwear to retrieve drugs, another who was bitten on the hands, and a third who was cut by a razor blade while frisking a suspect. It's not known how the fourth cop contracted HIV, but he was the ex-boyfriend of Jane Doe, and the pension board ruled she was not infected in the line of duty. Instead, she was granted an ordinary disability pension along with eight other HIV-infected officers who were denied the tax-free pension.

The NY Time has a huge, front page article on the curious "disability epidemic among" Long Island Rail Road retirees. In a nutshell, the article points out how many LIRR employees apply for disability after retiring...and they end up getting those federal payments. Back in 2004, 97% of employees who retired after the age of 50, applied for and received disability.

The faltering economy and the fall of Wall Street banks has turned city leaders into counselors trying to calm New Yorkers down, given the huge impact of those businesses on the city.

State Senator Joseph Bruno, who will retire tomorrow from his decades of public service tomorrow, will receive $90,000-100,000 annually in pension. According to the NY Times, that's a step up from his base salary of $79,500/year (plus his retirement health benefits are pretty sweet, too). But Bruno won't be kicking back, telling reporters, "I’m not the kind of guy who’s going to go off and retire and just play with horses and golf." He says he'll work in the private sector, not for a non-profit.

Building workers such as doormen, office cleaners, and janitors will probably not go on strike at the start of 2008 after their local union reached an agreement with Manhattan commercial property owners. Union members still have to vote to ratify the new four year contract, but the union leaders are recommending they do so.