State News Roundup

News Roundup | March 1, 2012

Businessweek reported New York City Mayor Michael Bloomberg and a coalition of 24 local leaders yesterday urged state legislators to support a plan proposed by Governor Andrew Cuomo to raise the retirement age from 62 to 65 and “allow for a voluntary 401(k)-type retirement plan.” Cuomo and his supporters say that no change in the pension plan will result in a jobs cut, but public-worker unions and Comptroller Thomas DiNapoli, the trustee of the pension fund, oppose changes.

Currently, state and local governments in New York are borrowing $750 million from the same $140 billion pension fund to which they owe money and will likely borrow $1 billion more in the next year, according to the New York Times. DiNapoli defended his stance saying the current pension plan gives “you help right now, not 30 years from now.”

While overall U.S. manufacturing grew less than forecast in February, manufacturing in Philadelphia grew at the fastest rate in four months and in New York at the fastest rate since June 2010.

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