The state Assembly has passed Tier VI pension legislation that will reduce local government and district pension costs in the long run, according to Assemblywoman Addie J. Russell, D-Theresa.

Passage of the bill (A.9558) protects current public employees from layoffs and protects the solvency of the system, she said.

However, the legislation reflects some significant differences from what was in Gov. Andrew Cuomo’s original pension reform proposal, she said.

Changes from Tier V that will affect new public employees include raising the retirement age to 63, which is lower than the Governor’s proposal of age 65.

The Assembly bill would exempt workers making less than $45,000 annually from having to contribute more than the current 3 percent rate to their retirement, and adjust other employee contributions as follows:

• those earning $45,000-$55,000 at a rate of 3.5 percent;

• those earning $55,000-$75,000 at a rate of 4.5 percent;

• those earning $75,000-$100,000 at a rate of 5.75 percent; and

• those earning $100,000 or more at a rate of 6 percent.

The Assembly bill would also limit the type of employee that can opt into the SUNY TIAA CREF plan to those who are classified as “exempt” and earning over $75,000. It also increases from three to five years the period of time used to calculate final pension benefits.

“This plan requires public employees not already in the system to pay more toward their pensions based on a sliding scale," Russell said. "I believe this plan strikes a better balance than the original proposal when you compare the cost savings achieved versus compensation levels needed to continue to attract quality employees into public service."

She continued. "However, should it become apparent that the balance is negatively impacting recruitment and retention of needed personnel, I will support revisiting these changes," she concluded.