Lawmakers seek compromise on pension plan

 As thousands of union workers rallied Tuesday against Gov. Andrew M. Cuomo's pension proposal, lawmakers on both sides of the aisle said a deal could be worked if changes to the plan were made.

Assembly Speaker Sheldon Silver told reporters that Cuomo needs to sit down with unions to find a compromise.

"The governor has to work out with the unions a reasonable approach to saving money in the pension system," Silver, a Democrat, told reporters after a speech before a rally of an estimated 2,000 union workers at the convention center. "There is a deal to be made that will safeguard secure retirement and save money for the state of New York."

The rally was sponsored by the union AFSCME as part of an annual "lobby day," which included meetings scheduled with every member of the legislature. Union leaders also called for the state to close corporate tax loopholes.

In a speech before union members, Sen. Tom Libous (R-Binghamton) said the governor's plan "needs a lot of work." He said the rising pension burden on state and local government was caused by people abusing the system and the lack of job creation, not the rank-and-file workers.

"We have abusers in the pension system and those abusers have to be stopped," he said.

The average benefit in the state pension system in fiscal 2011 was $21,984, according to figures reported by state comptroller's office. However, a small percentage of workers retire with six-figure pensions that disproportionately raise the costs of the system.

In January, Cuomo proposed a new, less generous pension plan in his budget that would give employees the option of a traditional defined benefit plan but with lower benefits and greater employee contributions, or a 401(k)-style defined contribution plan. The governor contends that rising pension costs make the current system unsustainable.

Silver would not say what's on the table for a deal.

The governor's office did not respond to questions about the lawmakers' comments.

State Comptroller Thomas DiNapoli, who appeared at the event via video from Washington, D.C., was blunt in his criticism of Cuomo's proposal, leading the room in a chant of "No way to 401(k)!"

Brian McDonald, legislative and political director for AFSCME, said workers were being unfairly blamed for problems caused by the financial meltdown.

"The truth is that Wall Street and the hedge funds and the corporate titans nearly ruined our economy in 2008 and 2009 and working people were left to pick up the pieces," he said.