Governor Paterson claims the new Tier V pension and other changes will save New York taxpayers $35 billion. That means it will cost future public employees $35 billion. I've looked at 2008 data from the Governments Division of the U.S. Census Bureau to figure out how much that would be per employee. Assuming SUNY and CUNY are not affected (I believe they have a 401K), the MTA is not affected, and New York City workers other than teachers are not affected, a total of 865,800 full time equivalent workers are in titles that are affected by the change. Their replacements' total compensation would be $40,425 lower as a result of Tier V if Paterson is correct. So what does this mean?
Are current and past workers overpaid? In that case, taxpayers are being cheated. Would younger workers be underpaid? In that case, the future workers would be cheated despite being forced (by state law which Paterson made permanent) to pay dues to unions that cut deals to enrich those cashing in and moving out and screw them.
Unless the lower compensation would force New York State and its local governments to hire less competent and motivated workers, which is the union's point of view: if that wasn't all they were worth, they wouldn't take the job. In that case, public service recipients will be ripped off more than they already are.
Now you know what fairness is, and what is required to preserve or improve public services. The average lifetime compenstation of a current and retired worker needs to be cut by $40,425 relative to new hires. Or more, based on past "screw the newbie flee to Florida" deals.
This could be done by giving those hired under the new rules higher salaries, forcing those with more generous pensions contribute more to them, and/or forcing those hired under old rules (and the retired) to pay more than new hires for their health insurance. None of these measures would "reduce or impair" pensions.
What would justice be? Justice implies deterrance, and this would require going far beyond $40,425 in favor of new hires, so that those who have been self dealing would feel the sting of having it happen to them, and perhaps become more interested in fairness in the future.