New York should set up a new tier of pension eligibility, according to a commission, Pensions & Investments reports. Under the new Tier 6, new employees in defined benefit plans will pay higher employee contributions and minimum retirement ages will be raised for them. The new tier will help municipalities and school districts meet their increasing pension costs. The Mandate Relief Design Team’s report expects savings for the Tier 6 pension-level proposal for the local governments and school districts to be almost $50 billion over 30 years.
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