KINGSTON – As momentum builds during this year’s state budget cycle to reform Tier 6 of the New York State Retirement System, the Ulster County Comptroller’s Office is urging careful consideration of the financial impact on local governments.
With more than half of Ulster County employees enrolled in Tier 6, proposed changes aimed at improving recruitment and retention could carry significant cost implications if not paired with increased state support, said County Comptroller March Gallagher.
She said policy makers should consider all alternatives such as expanding eligibility for the Voluntary Defined Contribution Plan or creating a plan similar to the SUNY Optional Retirement Plan.
“Modernizing Tier 6 has clear benefits for workforce recruitment and retention,” said Gallagher. “However, without a commitment from New York State to absorb the associated costs, these reforms could place substantial financial pressure on counties, municipalities, and school districts. Local governments operate within tight property tax caps and budget constraints. Any enhancement to retirement benefits must be accompanied by a thoughtful funding strategy at the state level to avoid shifting costs onto local taxpayers.”
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