Cuomo Administration unilateral action hits retired state employees hard

ALBANY — A coalition of CSEA, PEF, UUP, NYSCOPBA, NYSTPBA, NYSPIA, and
AFSCME Council 82, unions representing virtually all of New York State employees have filed
lawsuits in federal court challenging the Cuomo Administration’s unilateral increase in the
percentage of health insurance contributions required of state retirees.

The legal challenge applies to changes made by the administration this fall and covers state
employees who have retired and seen their share of health insurance premium increase beyond
the level at which they retired.

Retirees have long contributed 10 percent of individual coverage and 25 percent of family
coverage for their health insurance coverage in retirement based on the percentages included in
the state contracts when they retired.

The changes imposed by the Cuomo Administration increase the percentage of contribution 2
percent for both individual and family coverage. The changes have severe and unexpected
consequences on retired employees. The coalition of unions asserts that it is illegal for the state
to increase those rates for already retired members. The unions did not negotiate such increases.
Contrary to popular perception, most public employee retirees have contributed to their health
insurance and retirement costs over decades of service and receive only meager to modest
benefits. For example, individuals who retired prior to 1983 receive an average pension benefit
of $8,760. Those who retired between 1983 and 1990 have a retirement benefit of $13,786
annually.

Out of their fixed income, retirees must pay rising food, fuel, and gas prices along with all other
living costs. A retiree on fixed income covered under the Empire Plan would pay about $150
more annually for individual coverage and about $460 more for family coverage. Costs for other
health insurance options would vary according to the plan. Making matters worse, the Cuomo
Administration has indicated that it will unilaterally impose a 6 percent increase for retirees who
retire on or after Jan. 1, 2012, these changes will result in a 60 percent increase in contribution
costs for individual coverage and a 24 percent increase for dependent coverage.

All of the employee groups appealed to the Cuomo Administration not to impose this change on
retirees before its imposition. The state must now respond to the legal filing in the next month.
“CSEA is disturbed and disappointed that the Cuomo Administration can be so heartless about
imposing higher costs on people who have devoted their lives to the service of New Yorkers,”
said CSEA President Danny Donohue. “Nobody bargained for this and these increases will hit
retirees hard – it’s not right and they don’t deserve this treatment.”

“What the Cuomo Administration is trying to do is pull the rug out from under state retirees
many of whom planned their retirements based on when they felt they could afford to retire.
These decisions were based on a promise and expectation of what their health insurance costs
would be. Changing the rules after the fact is outright wrong,” said PEF President Ken Brynien.
“Our members selflessly work to protect New Yorkers in some of the most dangerous
environments in the state. They have earned these benefits, and they are entitled to the coverage
that the state agreed to when they retired,” said NYSCOPBA President Donn Rowe. “Not only is
this change unconstitutional, it’s just unfair. The Cuomo Administration should recognize its
legal obligations to its retirees and not shift its financial burdens on those least able to absorb the
hit.”

“The New York State Troopers PBA will continue to fight for the well-being of our retired
members. It is imperative that the active members of the PBA protect those members who came
before us and proudly wore the gray uniform while sacrificing so much in the name of public
safety,” said PBA President Thomas H. Mungeer.

Joseph Barrett, president of the New York State Police Investigators Association (NYSPIA),
stated: “It is unfortunate that, after risking their lives for the citizens of the State of New York
during their careers, that same State of New York now chooses to impose unprecedented health
care cost increases on its retired State Police members and the widows and widowers of its
deceased members. The State’s decision to force this cost increase on our retirees in these years
when they live on a fixed income is particularly disturbing”

“The hardworking public safety professionals of New York State are particularly outraged by the
Cuomo administration’s targeting of retirees,” said Council 82 Executive Director James Lyman.
“Council 82’s retirees are men and women who dedicated their lives to providing a safer New
York and deserve to be respected and honored for their service, rather than have the state turn its
back and break its promise to its retirees.”