RPEA President urges New York to restore Medicare benefits and increase pension COLA

In a recent Joint Legislative Hearing on the 2025 Executive Budget Proposal, key discussions highlighted the pressing concerns of labor and workforce development in New York. The meeting, held on February 26, 2025, brought together various stakeholders, including representatives from management and retired public employees, to address significant issues affecting state workers and retirees.

One of the most urgent topics was the compensation disparity faced by management confidential (MC) employees. Many expressed feelings of being undervalued, as their salaries do not align with those of unionized colleagues. With approximately 7,000 of the 11,000 MC employees having proven their qualifications through competitive exams, the lack of collective bargaining leaves them vulnerable to the executive branch's decisions regarding pay and benefits. Stakeholders urged the legislature to consider their written testimonies, which included specific proposals to improve their situation.

Additionally, the hearing addressed the potential elimination of the sub-state subsidy for the Individualized Residential Alternative (IRMA) program, with strong opposition voiced against this proposal. Participants emphasized the importance of maintaining this subsidy to support vulnerable populations.

Diana Hinchcliffe, President of the Board of Directors of the Retired Public Employees Association, presented three critical legislative priorities for retirees. First, she called for the restoration of the Medicare Part B income-related monthly adjustment amount (IRMAA) reimbursement, which the executive budget seeks to eliminate. This reimbursement is vital for retirees facing increased healthcare costs.

Second, Hinchcliffe advocated for an increase in the pension cost-of-living adjustment (COLA), noting that many retirees live on fixed incomes that have not kept pace with inflation. The current COLA only applies to the first $18,000 of a pension and is capped at 3%, despite the consumer price index rising significantly over the past two decades.

Lastly, she highlighted the need for parity in skilled nursing facility coverage between Medicare primary Empire Plan retirees and active employees, urging lawmakers to support bills that would ensure equal access to necessary healthcare services.

The hearing concluded with questions from legislators, including inquiries about the state's hiring practices and the reliance on overtime, which has led to a multibillion-dollar expenditure. This discussion underscored the ongoing challenges in workforce management and the need for strategic hiring to alleviate financial burdens on the state.

As these discussions unfold, the outcomes of the hearing could significantly impact the lives of state employees and retirees, shaping the future of labor relations and workforce development in New York. The legislature's response to these concerns will be crucial in addressing the needs of those who serve the public.