posted on January 28, 2013 13:43
Participating in Governor Cuomo’s proposed Stable Rate Pension Contribution Option could save Genesee County $3.3 million the coming fiscal year and $11.6 million over five years, according to estimates from the governor's office.
But County Manager Jay Gsell says it’s not that cut-and-dry.
“The problem is that the governor’s proposal," Gsell said, "and the state comptroller Mr. (Thomas) DiNapoli I don’t think are on the same page presently with this proposal. That’s the fly in the ointment and therefore why a number of in the public sector…are not necessarily running out into the street and raising the flag and saying, “Hot darn, this is the best thing since pockets.”
As part of smooth-plan, the proposal calls for smaller contributions to the state pension program intended to reduce near-term payments while still keeping the pension system fully funded over the long-term.
"This is a proposal that could possibly, on a short-term basis," Gsell said, "reduce what we are anticipating at the local government level to have to be paying into the New York State pension system. "
Gsell says the pension system has recouped the losses of 2007 through 2009 and that pension rates were set to decrease in 2014 anyway. New York is in the “enviable” position to have a 95-percent-plus funded retirement system.
Gsell says the county is being very cautious with the proposal and will be seeking more details as the budget process progresses.