As 2012 begins and the New York State Legislature begins a new session, its first priority should be reform of the financing and benefits of pensions for state and local employees. Such reforms are urgently needed because (1) the relatively high cost of the current system places New York at a competitive disadvantage, and (2) these costs have been growing and are projected to continue growing, making a bad situation worse.

A sensible way to change the outlook has been proposed by Governor Andrew Cuomo and is known as “Tier VI.” He should include such a plan in the Executive Budget next week, and the Legislature should adopt it in a timely manner.