The city, the estimate says, will save nothing from cutting certain pension contributions for unionized employees. The reform calls for the city to reduce the percentage of the employees’ contribution it pays toward their pension, a benefit called an “offset” or “pickup.”
How can a reduction result in zero savings?
Simple. If you give employees something back to make up for taking away the benefit, you save nothing.
The city intends to do just that, said Chief Operating Officer Jay Goldstone.
“It will probably end up being a negotiated trade off for something else they had given up,” Goldstone said.