Gov. David Paterson says an agreement with unions will avoid major layoffs of state workers while adding extra payments for those who elect to retire and a lower pension tier for new hires.
Paterson says the deal should save $440 million over two years, roughly the amount that would have come from up to 8,900 layoffs he announced in March.
The governor's office says a one-time, $20,000 retirement incentive will be offered to about 4,500 employees. Some 2,500 jobs that are currently funded but vacant will be permanently abolished.
Lawmakers would have to approve the new pension tier.