Liu to Bloomberg: Stop Demonizing City Workers

City Comptroller John Liu believes Mayor Mike Bloomberg “made a mistake,” in his State of the City Address, and is calling on him to “stop demonizing city workers.”

Bloomberg during his address this week said the most important of all issues facing the city is pension reform.

The average City taxpayer, he said, will pay $2,400 more than they did in 2001 to cover pension costs for municipal workers.

Pension benefits going to teachers, police officers, firefighters, sanitation workers, correction officers and other employees will account for $7 billion in city funds.

“City workers deserve a safe and secure retirement, but right now, they receive retirement benefits that are far more generous than those received by most workers in the private sector – and that provide for a much earlier retirement age,” said Bloomberg.

Bloomberg said he will seek to create a new tier for non-uniformed city workers hired in the future that would raise retirement age to 65.

Liu attributed rising pension costs to low investment returns stemming from the 2008 financial collapse—not larger bonuses.

“Public employees generally get richer benefits, that is true, not only in New York, but in every other city and state,” said Liu, adding that public employees don’t get paid as those in the private sector.

“So if you want to talk about competition don’t just talk about retirement plans, don’t just talk about defined benefits to the plan,” said Liu. “Guess how many public sector employees get 401k matches,” he asked rhetorically.

Liu was set off in response to Bloomberg’s speech after Andrew Rocco, a UFT teacher present at Liu’s Wednesday appearance before the Clinton Democratic Club commented, “After hearing the Mayor’s speech it seemed that the whole economic crisis could be blamed on pension costs of City and Labor unions.”

 Liu also spoke to the scandal, what he categorized as a crime of irony. “The idea was set up so that employees would not cheat the City out of time,” said Liu. “And they wound up bilking the city, allegedly, 80 million dollars! You don’t know weather to laugh or to cry”.

It is unlikely, Liu forecasted, that Bloomberg can recover all of the defrauded money, as he has vowed. “The mayor has said he is going to recover every penny of the theft, and I kind of doubt that,” said Liu. “I hope he does, but my office will be on top of City Hall to make sure they do.”