Silver: Cuomo's 401K Plan Has Many 'Pitfalls'
Wednesday, February 01, 2012 - 11:06 AM
State Assembly members are questioning Governor Andrew Cuomo's proposal to use 401Ks as a retirement option for future state workers.
“I think it has very many pitfalls,” said Assembly Speaker Sheldon Silver. “I don’t want to see people who’ve worked 40 years basically not be able to retire.”
A plunge in the stock market could wipe out the savings of someone on the brink of retirement, he said.
Silver agrees with the governor’s proposal to stop employees from using overtime in their last years of state service to artificially boost their salaries and pension rates.
The speaker said there have been some “abuses” and that some of the costs need to be “reined in.”