New York teachers’ retirement age could be lowered to 58-years old as part of a $500 million sweetheart deal that powerful unions are pushing Gov. Kathy Hochul to accept, insiders revealed.
The stunning proposal arose during the seemingly endless state budget talks, in which Hochul has engaged in tit-for-tat rounds of offers and counteroffers over public pensions.
Sources cautioned Wednesday that the pension reform – which began as $1.5 billion ask from the unions that would’ve reduced all public workers’ retirement ages to 55 after 30 years of service – was still not yet fully baked.
New York state teachers unions are pushing Gov. Kathy Hochul to accept a deal that could lower the retirement age of the state’s public educators to 58 years old. Stephen Yang for NY Post
But Gov. Kathy Hochul has signaled she’s willing to lower retirement ages, regurgitating the unions’ line of an alleged recruitment and retention “crisis.”
“We’re having a real shortage here, so I have to address that number one,” she claimed to The Post on Monday.
“Number two, as you know, there was a very, very expensive, ambitious plan put forth and this has been scaled back dramatically.”
The back-and-forth over sweetening retirement benefits for Tier VI public workers hired after 2012 has been unfolding behind closed doors between Hochul and AFL-CIO President Mario Cilento, who represents a coalition of unions.
The latest union pitch specifically called to carve out Tier VI teachers, giving them a retirement age of 58, insiders said.
All other Tier VI employees, including public health care workers and state cops, would have their retirement lowered to 60 years old under the deal, sources said.
A general view of a United Federation of Teachers sign or UFT sign as seen on an office building in the Bronx, NY on May 30, 2025. Christopher Sadowski
The pension tier – which covers roughly 780,000 public employees – was established in 2012 as lawmakers sought to restrain retirement costs.
The controversial reform raised the retirement age to 63 slightly closer to private sectro standards and upped workers’ contribution limits to as high a 6% of earnings.
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Unions, particularly the powerful United Federation of Teachers, have groused over the changes – and gained momentum as state budget negotiations dragged out and Hochul mounts a re-election bid as a Democrat in the reliably blue Empire State.
The push coincided with Mayor Zohran Mamdani’s own effort to delay a costly mandate to reduce school class sizes by setting per class maximums. The effort, which comes despite declining enrollment, was backed by the UFT but Mamdani pushed for the delay in order to bolster the city’s precarious budget.
New York City Mayor Zohran Mamdani delivers remarks about the fiscal year 2027 budget in New York City Hall, New York, U.S., May 12, 2026. Anadolu via Getty Images
The class-size delay appears likely to be included in the final state budget, although UFT President Michael Mulgrew notably didn’t oppose it – an indication the teachers scored a victory elsewhere.
“The city and the state budgets are both works in progress,” he said Tuesday. “We are committed to bringing small class sizes to all students. We have to get it done.”
The evolving deal is starting to reveal the competing interests of the various unions that fall under the umbrella of the AFL-CIO.
New York State Governor Kathy Hochul holds a press conference about celebrations in New York for the 250th anniversary of the United States of America. Stephen Yang for NY Post
Teachers have been pushing strongest to lower their members’ retirement age while law enforcement unions want better provisions so their members can jack up their pension payouts by working more overtime in their final years on the job, sources familiar with the conversations said.
Other public employees unions have been advocating for their members to pay less into the pension system.
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“It makes political sense,” one lobbyist said when asked about the logic behind the handout.
The development comes as state budget talks have entered a zombie-like stage.
Top leaders in the state Assembly and Senate have signaled they expect to see the final text of Hochul’s $268 billion spending plan be release next week, though sources say major aspects of the spending deal remain unresolved.
“Yeah, we’re clearly not negotiating,” another seasoned Albany lobbyist told The Post Wednesday.
Additional reporting by Carl Campanile and Kevin Sheehan