OFFICE OF THE MAYOR CITY DF SCHENECTADY NENW YORK FOR RELEASE: Iniediate CONTACT: Mayor's Ditice Thursday, December 2, 2010 SIS 342,501 MAYOR STRATTON ANNOUNCES 10-POINT PLAN FOR PENSION REFORM IN SCHENECTADY, Mayor Asks State Comptroller, State Pension Board 10 Work with Schencctay to Ensure Proper Calculation and Payment of Employee Pensions SCHENECTADY -- Mayor Brian U. Staton today announced « comprehensive 10-point ph to bring real reform public employee pensions in the City of Schenectady. The Mayor's ps mediately freezes future overtime payments for non-bargaining unit Adiinistrutive Nancts including applicable Public Safety Administzative personnel. ‘The Mayor's plan also places: mediate and indefiaite moratorium on all future retiremeni-based payouts of accumulated tenets ougoing City employees pending review and consultation by the Office ofthe State Compirolier (OSC) andthe New York State Retirement System to ensure such payouts, aswel 2: pension and benefit calculations, are detersined in a manner consistent with establish! a ‘proved OSC procedures, Recent events hav not only inthe City 0 Stratton si rved to further emphasize the need for public employee pension reforms schenectady, but in local governments across New York State." Mayor “Through the Schenectady Pension Reform Action Plan I announce today, our goal will he provide clarity and transparency in which pre-relizement employee benefit payouts and petision’s are calelated and executed in the City of Schenectady. “To that end, I have asked Office ofthe State Comptroller and the New York State Retirement ‘Board to work directly with us to immadiately and thoroughly review Schenectady's pension calculation processes, and to establish safeguards against unnecessary expenditures duc te Unclear or ambiguous non-legislative guidelines that have been in place for year in out Cy. ‘hich may net be corsistent wit established acceptable public pension procedures,” Mayr Stratton said e Pensions Mayor Siraton outlined the following Phan of Action for Reforming Public Employ cheneetady:Page? ssp pe? Etfective immediately. ove no longer be paid to any current or future nos bargaining uait administrator, including public safety administrators in the City Schenectady, regardless of past practice, employee expectations od previous mayors or administrations unless approved by the City Counc ‘The City of Schenectady will not include as reportable income to the State Retirement System any overtime payments made to date to current, non-barg. unit managers, including public safety administrative personnel for purposes 0! individual persion caleulations absent the approval ofthe City Couneil ‘The Mayor proposes aa amendment to the 2011 Budget to eliminate the $74,000 allocated for Fire Department administrative overtime previously approved by the City Couneil This savings can then be redirected to fund fcetighte ot police office positions scheduled for layofT or vacaney Phfectively immediacely, deemed null and votd are any directives and or policies of previous mayors or administrations providing for payment of specific overtinie to ‘hon-bargaining unit administrative managers including public satety administsty personel, absent the legislative approval of the City Count ‘An immediate inventory and accounting will be made ofall overtime payments previously made to existing, non-bargaining unit administrative mangers, fe personnel, without the legislative approval of is placed on all payouts of retirement based aceumlated emplayee boncfits, including vacation, sick time, Fongevity ant the like for non-bargaining unit administrative mangers and public safety administrators pending review to ensure compliance with all City and State gwdeines An immediate inventory shall be made of all antiipated pre-retirement henetit payouts which may be owed to non-bargaining unit administrative managers, including public safety administrators eligible for retirement An immediate, case-by-case review will be made of retirement benefit payout ‘caleolations by the State Comptroller and the State Retirement System for spec ‘employees to ensure that they’ are calculated in accordance with established ‘guidelines and procedures, and if nor, make necessary adjustments, ‘As has been the practice of my administration since 2008, all wei hired ‘administrative managers and publie safely personnel not covered By x collective bargaining agreement will work under the terms and conditions of an Individualbee 02 10 04:55p Pasa Page Managemen! Employment Contract, effective and binding upon signature of the ‘employee and the Mayor, and the approval of the City Council. ‘These contracts | specifically establish the limits of eligibility fer earning overtime, accumulation of sick Ieave, vacatcn pay and other compensator te provide greater financial accountability 10. We will continue to meet and consult with the Office of the State Comptroller for ng dialogue and comprehensive review of all past practices and procedures to sock the speaiffe guldance, review and direction of the State Comptroller and to ens. ‘hat peasions for non-bargaining unit administrative managers, including public safety "administrative personnel, inthe Cty of Schenoctady are ealeuated and determined in ‘method consistent with OSC policies and procedures, Mayor Stratan said going forward, the City of Schenectady will continue to advocate tor an achieve real Pension Reform in the City of Schenectady and in local governments throaehon State of New York. He said ic willbe also necessary t seek pension reform by eappinus vcs inmegotisted police ad fire labor contracts. Overtime for employees vovered by ¢vollectis bargtining unit can farther exacerbate the issue by enlarging pensions when avertime is grave: primarily to the most senior emplayees, “As Mayor. Ihave long called fora negotiated overtime cap in our police and fire labor co to limit overtime pac te no more than 20 percent of an individual's base silary in any one} ‘which would more evenly distribute necessary overtime among all wank and file Firefiziners ad police officers regandess of seniority. Hewever, if such reform earinot be achieved throu ‘olletive bargaining shen pethaps it ean be achieved through State legislation or marae th= Mayor sai, “In these dificult eeenomic times, public emplayee pensions are continuing to draw increase public seratiny. Many people are dumbfounded to comprehend orto explain how public pensions have grown so high, compared to retirement plans traditionally paid in the private sector. There must bea concerted effor to bring about real referm of public employee pensions at bot the local urd State level through systemie change,” the Mayor Sui, While we want to ersure that our hard-working employees sre compensated fairly and according 1 the law upon thee retirement from publie service, especially cur pubic safely bfficers who have riseed theit bves throughout their career in order to serve and protect our citizens, we alse have an obligation to ensure that peasions are aot extraordinary and are calculated in aecordavce with established procedures.” he added,