Some lawmakers in Albany say changes to the state’s public pension program could be pricey as others push to fix what some are calling an “unfair” system.
Thousands of union members from Buffalo to Long Island gathered in Albany on March 8 to call for lower retirement ages and reduced penalties for those under the state’s Tier 6 pension system, which has been in place for nearly 14 years. And while legislation hasn’t been formally introduced in the state’s budget, their push is making waves among Albany Democrats, including Gov. Kathy Hochul.
“I’m fighting for a stronger pension system because the more we attract people, we’ll be stronger overall,” Hochul said during the rally.
“At the end of the day, a fairer pension is about dignity,” she said. “Dignity is knowing that after decades of hard work — sacrificing yourself and making sacrifices for your family — that a whole new chapter awaits for you. Dignity is knowing that when you’ve been fairly compensated after all those long days and nights, you can rest easier.”
Some Republican lawmakers and conservative groups, however, warned the proposed changes could increase financial burdens on state and local taxpayers to offset billions of dollars in added pension-related costs.
Here’s what public pension changes could mean for you.
Why do educators, nurses and other public employees want Tier 6 changes in NY?
Tori Lennox, a teacher at Childrenspace North, an early childhood education center in Croton, peels a banana for a child during snack time Feb. 9, 2026. New York Governor Kathy Hochul has unveiled a plan to expand state funding for child care, which would include funding for universal pre-k.
Currently, Tier 6 members, or any full-time, permanent, 12-month employees of New York state or a participating employer who joined the state’s retirement system on or after April 1, 2012, must pay more of their salaries into the pension system than other tiers and face heavy penalties if they retire before age 63, according to New York State United Teachers (NYSUT).
It’s causing a staffing crisis, labor advocates say. Those in the Tier 6 system pay 3-6% of their salaries into the pension system the entire length of their career and their contributions go up as their pay increases. Comparatively, the contributions of those in the Tier 4 system are capped at 3% and end after 10 years and they have the option to retire at age 55 without any penalties.
There are currently 780,000 public workers enrolled in Tier 6, NYSUT says, and over 100,000 of the union’s members have earned significantly reduced pensions compared to earlier tiers. NYSUT claims changing the system will help keep people in the workforce and encourage the recruitment of new employees.
“Tier 6 isn’t just about pensions,” NYSUT President Melinda Person said during the rally. “It’s about whether the next generation of public servants — the teachers, the nurses, the firefighters, the public workers of tomorrow — will be treated with the same respect as those that came before them.”
Some improvements have already been made to the system. Pensions have been largely calculated on a worker’s final three years of salary instead of five since 2024, aligning those in Tier 6 with members in other tiers, but advocates are fighting for more.
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How could public pension changes affect New York taxpayers?
While the cost of reforming Tier 6 is unclear at the moment, Assembly Minority Leader Ed Ra, a Long Island Republican, says the alterations will “likely come with a significant price tag attached.”
“There’s been a lot of talk this year about affordability, it’s important that we take a thoughtful and balanced approach,” Ra said. “Any reforms must be carefully considered alongside the potential impact on property taxpayers.”
And Assemblyman Joe Angelino, a Southern Tier Republican, says Tier 6 benefits, as they currently stand, aren’t attracting New Yorkers to public service jobs, but a change could put financial pressure on the state’s smaller towns and villages.
“Tier 6 has been going on now for enough years that to correct it, we would have to buy back all of that time and I don’t know if that’s something local municipalities can afford,” Angelino said. “But New York state is also increasing their budget annually, and the state made this change, the state should correct it somehow with the billions of dollars they’re already taxing people.”
State Comptroller Tom DiNapoli assured the March 8 rally attendees, though, that “the money will be there to pay for your pension.”
The push for pension reform comes after former Gov. Andrew Cuomo and state lawmakers overhauled the system more than a decade ago, citing in part the need to reduce increasing costs to taxpayers. Between 2000 and 2010, combined annual employer contributions to New York’s state and local pension systems increased tenfold, from $1 billion to $10 billion, according to prior state budget testimony by the Empire Center, a conservative Albany-based think tank.
That annual cost reached $17 billion in 2015 before leveling off around $16 billion before the pandemic, the testimony in 2023 added.
Emily Barnes covers state government for the USA TODAY Network-New York with a focus on how policy and laws impact New Yorkers’ taxes, communities and jobs. Follow her on Instagram or X @byemilybarnes. Get in touch at ebarnes@usatodayco.com.
This article originally appeared on Rochester Democrat and Chronicle: NY public employees push pension reforms. How could it impact tax rates?
