Long before Andrew Cuomo became governor, he was blasting public employees who pile up overtime to jack up their pensions. So why, after three years as governor, is he still refusing to take the most effective steps to end this outrageous practice?
That’s a question folks may be asking as Cuomo’s superintendent of Financial Services, Ben Lawsky, completes his audit of public pension funds. As part of his effort, Lawsky is focusing on “pension-spiking” — i.e., running up overtime pay just before you retire to inflate the salary on which your pension will be based.
And the real scandal here, as The Empire Center’s E.J. McMahon notes, is that right now it’s all perfectly legal. “You’d have to be either lazy or crazy not to spike your pension” if your system allows it, McMahon says.
Lawsky is identifying ways for the pension funds to flag agencies where overtime abuse is severe, hoping managers will then fix the problem. That could help.
Problem is, Cuomo hasn’t been willing to take the big steps, such as insisting on the common-sense reform that pensions be based on salaries excluding overtime. Or even helping local governments reform work rules. Right now the unions can resist any such changes, because under the Triborough Amendment the terms stay in place even if there is no contract.
So unless this law is repealed, the unions will not bend. Cuomo’s view on Triborough repeal? “It’s a nonstarter,” he says.
Too bad. During the 2010 race for governor, Cuomo made a big deal out of pension-spiking, rightly pointing out it creates problems that “transcend occupation, region or job title.”
He noted that retirement payments for government employees had doubled over the previous decade, and he linked that to New York’s soaring property taxes — among the highest in the nation. Now his staff is auditing pensions to find ways to cut down on abuse.
But so long as the governor won’t press the case for the tough reforms, New Yorkers are going to be paying for pension-spiking for years to come.