September 23, 2011

Dear Senator/Assemblymember,

As the Statewide President of the PEF Retirees, I am writing to tell you how profoundly disappointed I am that New York State has imposed a 2% cost shift of health insurance premiums on current retirees.  The callous imposition of this shift in costs will further exacerbate the bind - in which seniors are trapped - of ever increasing health costs and a fixed pension income with an anemic Cost of Living Adjustment that is wholly inadequate. The Governor apparently claims that this cost shift is authorized by legislation passed in June- S5846/A8513. If he is correct, this represents an abandonment of a long-standing legislative policy to protect retirees from drastic cost increases or reduction in benefits.

Many of our retirees are your constituents living on marginal pensions and Social Security.  The vast majority of our retirees remain in New York State and spend their pension income in their communities.  Employee Retirement System Retirees make up 2.3% of the state population and pay $1.3 billion in real estate taxes.  Retirees and beneficiaries are responsible for $9.5 billion in economic activity in New York State and some 55,000 jobs.  Additionally, retirees generate $194 million in sales tax to local governments and $200 million to New York State and the Metropolitan Transit Authority.  Retirees are good citizens already contributing their fair share.

We recognize that New York State is currently experiencing a fiscal short fall, but balancing the New York State Budget on the backs of seniors who are least able to afford the sacrifice is as ill-considered as it is unfair.  I would ask that you remember the plight of voters who are defenseless seniors and resist the imposition of any further future cost shifts on retirees.  Seniors have been negatively impacted and are looking to you to defend their very modest benefits.  We are quite interested and hopeful that you will do so.

Sincerely,

Statewide President

PEF Retirees