Assemblyman Tom O’Mara (R,I,C-Big Flats) today fought to pass legislation that would transform the state’s retirement system by creating a defined contribution plan for all non-civil service appointees and elected officials.

            “State and local governments are already struggling to meet mandated pension contributions with more difficult economic times ahead,” said O’Mara.  “By removing elected officials and non-civil service appointees from the state pension system, the bill promotes private sector growth, ties lawmaker’s pensions to the strength of the overall performance of the economy and reduces burdens on the already strained pension system.”    

According to recent news reports taxpayer-funded pensions have increased by $3 billion over the last nine years, with the number of public retirees earning $100,000 or more rising dramatically.  Making matters worse, Assemblyman O’Mara noted that “pension padding,” a term commonly used to describe public employees who cram in extra overtime during their final years on the job, continues to occur with no real reform in sight.  

“I firmly believe that by removing the political class from the pension system, lawmakers will be more inclined to make the reforms necessary to ensure that the state’s pension system remains a viable fund over the long-term,” said O’Mara. “State government must enact changes that will make certain that state workers receive the pension they are entitled to.  To do this, we must reform the state pension system and the only way to do that is by taking the political class out of the mix.  As elected officials, we must lead by example.”     

Under the legislation supported by Assemblyman O’Mara, elected officials and non-civil service state workers and their employers would be required to contribute 3% of annual compensation to a defined contribution plan. The Comptroller would then select one or more financial organizations to administer the plan and to invest the funds.