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Pataki Threatens To Veto Pension Provision In Transit Contract
December 30, 2005

It looks like the governor might throw a wrench in the contract agreement that ended the stalemate between the MTA and the transit union.

Governor George Pataki's office said Thursday night that he wants to veto a key provision of the New York City transit contract settlement announced this week - one that gives 16,000 workers refunds of pension contributions.

A spokesman for the governor said: "We will not reward those who break the law," adding that the governor has vetoed similar measures twice before.

The provision, which would require a change in state law, would give many workers refunds of payments they made to their pension plan between 1994 and 2001, when most workers contributed 5.3 percent of their earnings.

In 2001, the contribution for most workers was reduced to 2 percent.

The deal reached by the Transport Workers Union and the MTA earlier this still needs to be approved by the union's membership.

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