The New York City Pension Benefit Guaranty Corp. announced Wednesday that its employees will get up to $500 more per year in retirement benefits, compared with the $325 a year previously.
The change, which will be retroactive to Nov. 1, will apply to workers in New York State, New York and Connecticut, as well as some workers in the District of Columbia.
Workers in New Jersey and Pennsylvania will be unaffected by the new benefits.
Workers and employers in the U.S. and Canada will receive the same benefit increase.
“The pension funds in New Yorkers and New Yorkers in the world have invested heavily in our workforce to help our nation keep pace with our growing economy and a rising cost of living,” said N.C. Gov.
“We have worked tirelessly to ensure the retirement benefits that are so critical to our success are fully paid for by taxpayers.”
Murphy said the pension plan would provide more generous retirement benefits for its members, who are among the most heavily insured in the country.
The New Yorkers plan is a $3.8 trillion plan that provides benefits to nearly 1.6 million city workers, and the New Jersey plan is $2.3 trillion.
“In New York, we are the world’s fifth-largest economy, with the largest workforce and a thriving professional and business sector,” Murphy said in a statement.
“New York City’s pensioners and New York workers are among those with the highest risk for catastrophic events, including catastrophic illness, disability and loss of productivity.
We must invest more in our health care system, especially in areas such as mental health and addiction treatment, and we must invest in long-term care and education for our citizens.
We need a plan that makes the long-run for our cities, towns and counties, and our state, the most secure in the nation, as New York’s pension plans have for the last six decades.”
The city also announced that it is providing additional financial assistance to its employees in the wake of the new retirement benefits.
It will provide an additional $1,000 per employee per year, and it will provide $1.50 per hour of unpaid leave, up to a maximum of three months.
The city’s employees are the second largest group in the city, and they make up a large chunk of the city’s workforce.
A spokesman for Mayor Bill de Blasio said the city would “continue to work with the pension funds to find ways to provide our city and state employees with the support they need.”
The plan will take effect Jan. 1.
The state and local governments are also making some changes, including making changes to benefits, such as providing a $1 billion emergency fund for workers, as of Oct. 31, to help offset the $4.2 billion cost of Hurricane Sandy.
They also will be cutting their employee contributions to their pension plans.
In Connecticut, lawmakers passed legislation on Tuesday that will provide the city and county governments $1 million for every worker who loses their job, up from $300,000 for the previous year.
The Connecticut Pension Benefit Fund will receive $1 in compensation for every Connecticut resident who loses his or her job.