Police, fire pension issue unresolved

The political horseplay taking place on the state Senate floor has overshadowed Gov. David A. Paterson's veto earlier this month of a bill that would have extended Tier II pension benefits to new police and firefighters hired after July 1.

That veto leaves a looming question: What pension tier should newly hired police and firefighters be enrolled in?

"It's not just an issue in the city of Watertown, it's all the municipalities that participate in the state pension system," City Manager Mary M. Corriveau said. "We're looking to Albany to identify what we do from here on out."

Albany isn't so sure of that answer, either.

"Our office currently is reviewing how the governor's veto will impact individuals hired after July 1," wrote Emily DeSantis, a state Comptroller's Office spokeswoman.

A governor's office spokesman reaffirmed the governor's stance on pension reform, but did little to answer the question.

"Governor Paterson is committed to enacting real pension reform to reduce cost and ensure the state's long-term fiscal stability," wrote Morgan Hook, deputy press secretary. "The governor will continue to work with the Legislature on this issue and any resolution must include broader pension reform. If there is no reform, the statutory process that was in place before 1981 would take effect to provide police and firefighters with pensions."

Mr. Hook said the state comptroller will decide which tier the newly-hired employee will be enrolled in based on the cost of their benefits to the municipality.

The governor introduced a Tier V proposal in March that includes pension reform for both "uniform" and "non-uniform" employees. The Legislature has neither approved the governor's proposal nor introduced one of its own since the veto of the Tier II extension.

"I'm willing to look at Tier V, but this is also a negotiated issued with the labor unions," said Assemblywoman Addie J. Russell, D-Theresa.

Mrs. Russell said that changes need to be made to keep the pension system solvent.

"I'd like to see something before the Legislature ends its session," she said.

The assemblywoman said she was unaware of any pension proposals other than the one introduced by the governor.

A message left for State Sen. Darrel J. Aubertine, D-Cape Vincent, seeking comment on the issue, was not returned.

The governor has pushed pension reform after the state comptroller warned that rate increases are possible after the pension fund lost about 20 percent of its value last year, dropping it to $122 billion.

The city of Watertown expects to pay an additional $4.7 million toward the pension fund during the next four years because of higher rates imposed by the state, Mrs. Corriveau has said.

"I'm sure they have enough issues on their hands right now, but this is an issue that is out there," Mrs. Corriveau said. "If there is no bill in place, what benefits would we provide?"