Gov. David A. Paterson and the state’s public employee unions announced an agreement on Friday that would reduce pension benefits for future public employees and save the state billions of dollars in an attempt to control ballooning costs for retirees.
To win their support for the deal, the governor provided the unions with significant incentives and backed off earlier demands for concessions from current employees.
Mr. Paterson will shelve his plan to lay off 8,700 workers and will drop a proposal to require existing workers to give up their 3 percent annual pay raise this year and to defer a week’s pay. In addition, 4,500 workers will be offered $20,000 buyouts.
Paterson administration officials said the agreement would save the state $30 billion over 30 years, but much of the savings will not be realized for another decade.
“This agreement is a huge win for New York’s taxpayers and will lead to the most significant reform of our public pension system in decades,” the governor said in a statement. “This is real reform to the pension system, which will substantially reduce costs to the taxpayers of New York State.”
The agreement will raise the retirement age for future employees from 55 to 62, and require them to contribute 3 percent of their salaries to their pensions for their entire careers, instead of for their first decade of service, which is the current requirement.
New workers will not become vested in the pension plan until they reach 10 years of service, rather than the current five. The deal will also limit the amount of overtime that employees can use in their last years of work to increase their pension benefits.
The agreement requires legislative approval, though endorsements by the governor and the labor unions virtually assure its success.
The deal covers state workers and local governments outside New York City; the Paterson administration hopes to negotiate a similar agreement for New York City employees, but city unions are adamantly opposed to doing so. New York City has its own retirement system. The deal also does not affect police officers, correction officers, teachers and firefighters.
The urgency of the need for changes in retirement benefits was underscored last week when the state comptroller’s office reported that the pension fund, hobbled by losses amid the market’s collapse, had shrunk to $109.9 billion at the end of March from $153.9 billion a year earlier.
The deal comes days after Mr. Paterson shocked and angered police and fire union leaders by refusing to allow new officers and firefighters across the state to continue to enroll in enviable pension benefits that were phased out in the 1970s for other public employees. The governor vetoed routine legislation that would have extended the benefits — similar bills have been signed by a series of governors going back to 1981.
While his veto was praised by budget watchdogs as a sign of rare resolve from the governor, his latest labor deal received mixed reviews.
Though the administration is hoping that the buyouts and an offer to allow employees to choose a reduced workweek will still generate immediate savings, the cash-poor state will be providing raises to the 129,000 employees covered under the deal announced Friday. Those raises will cost $180 million, at a time when some other states are freezing salaries and furloughing workers. There is also a cost of up to $90 million for the buyouts.
Further, New York has a history of reversing its pension cutbacks. The state has previously required that employees contribute to their retirement beyond 10 years of service, only to roll back the requirement in an election year. Union leaders, who had criticized the governor during months of negotiations, succeeded in their insistence that existing labor contracts not be reopened.
“The governor moved significantly from his original demands for major contract concessions from the state’s work force,” said Kenneth Brynien, president of the Public Employees Federation. “Considering the deteriorating condition of the state’s finances, this represents a reasonable accommodation.”
Danny Donohue, the president of the Civil Service Employees Association, said his union “recognizes these are extraordinary times with unprecedented challenges, and we have tried to find ways to help without reopening contracts.”
The agreement creates the first new pension category for state employees since 1983 — it is called Tier V because it is one of five such classifications, and provides the least generous benefits.
But it is not likely to encompass the city. A key labor leader in New York City called it a nonstarter, given that only this week city unions concluded negotiations that led them to amend health benefits for more than 550,000 current and retired employees, guaranteeing $400 million in savings over two years.
“The city unions just completed long, tough negotiations with Mayor Bloomberg,” said Harry Nespoli, the head of the Municipal Labor Committee. “As far as Tier V is concerned, it’s not negotiable,” he said, adding, “We’ve done our share.”
Financial analysts had varying views on the agreement.
“Obviously the benefits to the state, or its taxpayers, are not immediate,” said Jeremy Gold, a New York actuary and economist who has contended that governments often understate the ultimate costs of pension benefits. But he added that restraining the benefits of future hires “may be the beginning of the way out.”
Edmund J. McMahon, director of the Empire Center for New York State Policy, a conservative-leaning research group, said the governor had not gone nearly far enough. Referring to the 4,500 buyouts, he said the deal “allows you to pay more money to union members who are already ready to retire.”
Mr. McMahon said he believed New York and other states needed to follow the shift embraced by the private sector away from the traditional defined-benefit pension plan to a 401(k)-style retirement program to prepare for a potentially calamitous future increase in pension costs.
Speaking of the governor’s deal, Mr. McMahon said, “If you contrast this to what is happening in other major states, where you have union agreements of givebacks or furloughs, it’s remarkable.”
Elizabeth Lynam, the deputy research director of the Citizens Budget Commission, a nonprofit policy group, called the move “a really good start.”
“It’s going to be tough to find the money to do the buyouts, but the pension tier is significant,” she said. “If you think about the $45 billion the pension fund lost this year, a new pension tier is desperately needed.”
Friday, June 5, 2009
England humiliated by Broad's last-ball blunder
England face the prospect of being thrown out of their own party at the very first stage of the World Twenty20 after a humiliating defeat by Holland in yesterday's opening match. They were beaten by four wickets from the last delivery of a thrilling contest as orange shone bright in the murky twilight of a memorable evening at Lord's. MCC members, who presumably feared the worst, mostly stayed away.
England must now beat Pakistan in their remaining group match at The Oval on Sundayand hope they can squeeze through on net run rate. If they fail they will perhaps be looking to arrange some warm-down matches over the next few days.
Holland did beat England in 1989 and 1993. But both games, played in Holland and on matting, were essentially hit-and-giggle matches against England XIs.
If there was any giggling last night it came from the direction of the Australia and Pakistan camps as England, desperate to win a global competition for the first time, were fairly beaten by one of the three qualifiers in their worst ever one-day defeat.
It was the Essex all-rounder Ryan ten Doeschate who used his experience to see Holland over the line but it was Tom de Grooth (which means The Great in Dutch) who propelled his side towards this unlikely win. De Grooth, 30, nicknamed Two Thumbs and a youth coach in The Hague, is not one of the four players in the Holland side with county experience but it was his striking which set England back on their heels as he hit 49 from 30 deliveries with six fours and a six straight back over the bowler Stuart Broad's head.
There was always a niggling feeling in English hearts that their side's total of 162 could be pursued with some optimism by the Dutch after another fine start by Ravi Bopara and Luke Wright was not capitalised on by the rest of the batsmen.
Darron Reekers had given his side a fiery start with two sixes in a 13-ball 20 and then De Grooth maintained the impetus. But when he too was out, lobbing the ball up to Rob Key at mid-off to leave Holland 116-4 at the end of the 13th over, the outsiders looked likely to falter.
Instead they kept going, even though they hit only three boundaries off the last six overs. They wanted 42 off five overs, 30 off four, 21 off three, 17 off two and then seven off the last six balls.
It was a generally good over by Broad, with five singles coming off the first five deliveries. But his bowling was better than his fielding, as he missed a sharp return catch and three run-out chances, including that of Edgar Schiferli off the last ball of the innings.
It would have won the game had he hit – but he missed, and Schiferli and Ten Doeschate scampered through for an overthrow to win the game.
There had been a strong sense of anti-climax before the match – there always would be with England, a full member of the ICC, playing Holland, an associate member. England versus Pakistan would have been a much more attractive competition opener. Or so everyone thought.
Essentially, this World20 launcher was one that few people wanted to watch. Perhaps it was their protest against the flashing signs in front of the pavilion. The rain did not help and nor did the cancellation of the opening ceremony. In fact the ceremony was, eventually, a very English compromise.
At first it was delayed then cancelled and finally it was decided to do away with the main and interesting bit (the singing of Alesha Dixon) but carry on with some tedious speeches. The dancers, meanwhile, wore fleeces to keep themselves warm which detracted from any sense of celebration. When, eventually, Holland trotted down the pavilion steps, looking anxious to make up for the 20 minutes lost to the weather, they were promptly sent back by officials; the black-clad umpires and the sponsors' girls were not in their proper positions. But at least the lights worked and once the cricket started it skittered along.
England's in-form opener Bopara drove Dirk Nannes' opening delivery into the ground and over backward point for four and the 50 came up from 39 balls with seven fours.
The left-arm Nannes bowled quickly enough to drive his captain and wicket-keeper Jeroen Smits back to the edge of the circle but he was unable to make the breakthrough which Holland desperately needed.
For the second time in three days Bopara and Wright put on a century opening partnership but this time it was in an official Twenty20 game and it represented England's best in this form of the game, beating the 65 shared by Wright and Phil Mustard in Christchurch last year. Bopara played the classier innings, Wright the more muscular. But after reaching 100 off 11 overs England failed to kick on or even maintain their healthy momentum. Bopara had struck 46 from 34 balls when he was caught at long-on in the 12th over. Wright continued to cudgel away for 71 from 49 balls, with eight fours. But in the absence of Kevin Pietersen there was a shortage of testosterone in the middle order.
Owais Shah had scored just five when he hit the ball straight to deep square leg, Eoin Morgan,reverse-swept to destruction for just six and after Wright was caught at wide long-on neither Paul Collingwood nor Rob Key could hit the much needed boundaries: England scored nine of them from their first 10 overs but just five in the second half of their innings. They would pay for that.
"We were looking to get up to 170-180," the captain Paul Collingwood shrugged after the game. "They bowled well at the back end of our innings and we should have defended a total like that, but unfortunately they were better on the day. Holland had no fear and every time we got a wicket we thought we were on top.
"We had a lot of chances at the back end. We do it in practice but you need to do it out in the middle in pressure situations and tonight we didn't do it. There's a fine line between winning and losing
England must now beat Pakistan in their remaining group match at The Oval on Sundayand hope they can squeeze through on net run rate. If they fail they will perhaps be looking to arrange some warm-down matches over the next few days.
Holland did beat England in 1989 and 1993. But both games, played in Holland and on matting, were essentially hit-and-giggle matches against England XIs.
If there was any giggling last night it came from the direction of the Australia and Pakistan camps as England, desperate to win a global competition for the first time, were fairly beaten by one of the three qualifiers in their worst ever one-day defeat.
It was the Essex all-rounder Ryan ten Doeschate who used his experience to see Holland over the line but it was Tom de Grooth (which means The Great in Dutch) who propelled his side towards this unlikely win. De Grooth, 30, nicknamed Two Thumbs and a youth coach in The Hague, is not one of the four players in the Holland side with county experience but it was his striking which set England back on their heels as he hit 49 from 30 deliveries with six fours and a six straight back over the bowler Stuart Broad's head.
There was always a niggling feeling in English hearts that their side's total of 162 could be pursued with some optimism by the Dutch after another fine start by Ravi Bopara and Luke Wright was not capitalised on by the rest of the batsmen.
Darron Reekers had given his side a fiery start with two sixes in a 13-ball 20 and then De Grooth maintained the impetus. But when he too was out, lobbing the ball up to Rob Key at mid-off to leave Holland 116-4 at the end of the 13th over, the outsiders looked likely to falter.
Instead they kept going, even though they hit only three boundaries off the last six overs. They wanted 42 off five overs, 30 off four, 21 off three, 17 off two and then seven off the last six balls.
It was a generally good over by Broad, with five singles coming off the first five deliveries. But his bowling was better than his fielding, as he missed a sharp return catch and three run-out chances, including that of Edgar Schiferli off the last ball of the innings.
It would have won the game had he hit – but he missed, and Schiferli and Ten Doeschate scampered through for an overthrow to win the game.
There had been a strong sense of anti-climax before the match – there always would be with England, a full member of the ICC, playing Holland, an associate member. England versus Pakistan would have been a much more attractive competition opener. Or so everyone thought.
Essentially, this World20 launcher was one that few people wanted to watch. Perhaps it was their protest against the flashing signs in front of the pavilion. The rain did not help and nor did the cancellation of the opening ceremony. In fact the ceremony was, eventually, a very English compromise.
At first it was delayed then cancelled and finally it was decided to do away with the main and interesting bit (the singing of Alesha Dixon) but carry on with some tedious speeches. The dancers, meanwhile, wore fleeces to keep themselves warm which detracted from any sense of celebration. When, eventually, Holland trotted down the pavilion steps, looking anxious to make up for the 20 minutes lost to the weather, they were promptly sent back by officials; the black-clad umpires and the sponsors' girls were not in their proper positions. But at least the lights worked and once the cricket started it skittered along.
England's in-form opener Bopara drove Dirk Nannes' opening delivery into the ground and over backward point for four and the 50 came up from 39 balls with seven fours.
The left-arm Nannes bowled quickly enough to drive his captain and wicket-keeper Jeroen Smits back to the edge of the circle but he was unable to make the breakthrough which Holland desperately needed.
For the second time in three days Bopara and Wright put on a century opening partnership but this time it was in an official Twenty20 game and it represented England's best in this form of the game, beating the 65 shared by Wright and Phil Mustard in Christchurch last year. Bopara played the classier innings, Wright the more muscular. But after reaching 100 off 11 overs England failed to kick on or even maintain their healthy momentum. Bopara had struck 46 from 34 balls when he was caught at long-on in the 12th over. Wright continued to cudgel away for 71 from 49 balls, with eight fours. But in the absence of Kevin Pietersen there was a shortage of testosterone in the middle order.
Owais Shah had scored just five when he hit the ball straight to deep square leg, Eoin Morgan,reverse-swept to destruction for just six and after Wright was caught at wide long-on neither Paul Collingwood nor Rob Key could hit the much needed boundaries: England scored nine of them from their first 10 overs but just five in the second half of their innings. They would pay for that.
"We were looking to get up to 170-180," the captain Paul Collingwood shrugged after the game. "They bowled well at the back end of our innings and we should have defended a total like that, but unfortunately they were better on the day. Holland had no fear and every time we got a wicket we thought we were on top.
"We had a lot of chances at the back end. We do it in practice but you need to do it out in the middle in pressure situations and tonight we didn't do it. There's a fine line between winning and losing
Hopes for US recovery grow as job losses ease
The US unemployment rate edged up to a 25-year high of 9.4% last month as employers shed 345,000 jobs, although economist took comfort in signs that the rate of erosion in the workforce slowed down sharply.
Non-farm payroll figures released by the US commerce department revealed that the headline rate of unemployment rose by half a percentage point from April's figure of 8.9%.
However, the number of jobs disappearing from the economy was the lowest since September. Job losses significantly dropped in comparison with revised figures of 652,000 and 504,000 for March and April.
"Good news at last," said Kurt Karl, the chief US economist at Swiss Re in New York. "At some point, we had to start moving to the 300,000 range; after all, we already laid off an incredible amount of people."
Since the economic slump began at the end of 2007, the US has lost more than 6m jobs. But the slowdown in job losses is likely to provide succour for those who believe "green shoots" are beginning to emerge on the financial landscape.
In construction, job losses of 59,000 in May were considerably lower than the 108,000 positions shed in April; in the service sector, about 120,000 positions disappeared compared with 230,000 the previous month.
Nigel Gault, the chief US economist at IHS Global Insight, said: "The message is: the most extreme phase of hiring cuts in capital spending, that's now behind us. Firms were very quick to react to the downturn in the economy."
Experts remain concerned about the likely impact of woes in the Detroit carmaking industry on employment over the coming months. General Motors and Chrysler have filed for bankruptcy and are idling many of their vehicle plants.
Yet a cautious mood of optimism has powered Wall Street upwards, with the Dow Jones industrial average up by 27% since early March. Activity has increased in the battered housing market and there are signs that credit crunch has begun to thaw, with banks proving more willing to lend money.
Non-farm payroll figures released by the US commerce department revealed that the headline rate of unemployment rose by half a percentage point from April's figure of 8.9%.
However, the number of jobs disappearing from the economy was the lowest since September. Job losses significantly dropped in comparison with revised figures of 652,000 and 504,000 for March and April.
"Good news at last," said Kurt Karl, the chief US economist at Swiss Re in New York. "At some point, we had to start moving to the 300,000 range; after all, we already laid off an incredible amount of people."
Since the economic slump began at the end of 2007, the US has lost more than 6m jobs. But the slowdown in job losses is likely to provide succour for those who believe "green shoots" are beginning to emerge on the financial landscape.
In construction, job losses of 59,000 in May were considerably lower than the 108,000 positions shed in April; in the service sector, about 120,000 positions disappeared compared with 230,000 the previous month.
Nigel Gault, the chief US economist at IHS Global Insight, said: "The message is: the most extreme phase of hiring cuts in capital spending, that's now behind us. Firms were very quick to react to the downturn in the economy."
Experts remain concerned about the likely impact of woes in the Detroit carmaking industry on employment over the coming months. General Motors and Chrysler have filed for bankruptcy and are idling many of their vehicle plants.
Yet a cautious mood of optimism has powered Wall Street upwards, with the Dow Jones industrial average up by 27% since early March. Activity has increased in the battered housing market and there are signs that credit crunch has begun to thaw, with banks proving more willing to lend money.
Mother starved daughter to death, murder trial hears
The body of a seven-year-old girl who died after being starved under a "punishment regime" looked like an African famine victim, a court heard today.
Khyra Ishaq's "emaciated" body was found in May last year after she had allegedly been held captive by her mother, Angela Gordon, and Gordon's boyfriend, Junaid Abuhamza.
Khyra and five other children had been locked out of a fully stocked kitchen for up to six months, Birmingham crown court was told. On the rare occasions they were fed, they were given dry bread or porridge, which they had to eat with their hands on the floor. If the children were caught "stealing" food they were punished with "detention", made to stand outside in the cold, beaten with a cane or made to overeat until they were sick, the court heard.
Neighbours reported hearing screams of "let me out, let me out" in the middle of the night, and saw the "abnormally thin" Khyra in the garden in her underwear.
Police and social workers went to the home in Handsworth, Birmingham, several times but Gordon would not let them in, the court heard.
Jurors wept when they were shown pictures of Khyra taken before and after her death on 17 May last year. Handing over the first picture, taken in April 2007, the prosecution barrister, Timothy Raggatt QC, said: "That is Khyra Ishaq as she was in life, about a year before the events you are going to be concerned with.
"You see there a picture of a normally developing healthy girl. That is how her wider family remember her and describe her in life." Raggatt then asked the jury to turn to the picture taken at postmortem, which he suggested was reminiscent of something seen in an African famine. "That did not happen naturally – it was not a result of accident or disease. It was result of deliberate action. That is why there's a charge of murder."
The jury were shown photographs of a fully stocked kitchen and fridge. The court heard a lock was fitted high up on the kitchen door to keep the children out.
Raggatt said: "That household was not a household that was short of food, there was ample food in it for everyone. The supply of food was controlled, it was controlled by these two [defendants]."
The court was told Khyra died of an infection. But Raggatt said the fact she died of an infection was "really neither here nor there. The cause of her death was the physical state that she was in. In a nutshell, their [position] is exactly the same as anyone who kept a prisoner and sets out to starve them to the point where their life is at risk. It's just as much murder ... as if they had shot, stabbed, beaten or strangled Khyra to death."
Gordon, 34, and Abuhamza, 30, had a duty in law to care for Khyra but had betrayed that duty in every possible sense, while also mistreating five other children in their control, the prosecutor said.
"All of them, as well as being starved, were subjected to violence of differing degrees," Raggatt said.
The jury was told that Abuhamza, who denies murder, pleaded guilty on Wednesday to child cruelty charges relating to the five other children.
Gordon denies murder and five charges of child cruelty alleged to have been committed between December 2007 and 17 May 2008.
The court heard Khyra had lived a "normal and happy family life" while her natural parents were together. But the marriage failed and in 2007 Gordon and Abuhamza became a couple, with Abuhamza moving into the home.
In December 2007 things changed "dramatically", Raggatt said, when Khyra was removed from school and Gordon refused to admit visitors.
Summarising defence case statements prepared before the trial, Raggatt said Gordon had denied depriving Khyra of food.
"She is saying that none of this is her doing. Angela Gordon believes Khyra may have suffered from E coli or been poisoned by food given to her by her neighbours."
Abuhamza had acknowledged he was party to the unlawful killing of Khyra, Raggatt said.
The trial continues.
Khyra Ishaq's "emaciated" body was found in May last year after she had allegedly been held captive by her mother, Angela Gordon, and Gordon's boyfriend, Junaid Abuhamza.
Khyra and five other children had been locked out of a fully stocked kitchen for up to six months, Birmingham crown court was told. On the rare occasions they were fed, they were given dry bread or porridge, which they had to eat with their hands on the floor. If the children were caught "stealing" food they were punished with "detention", made to stand outside in the cold, beaten with a cane or made to overeat until they were sick, the court heard.
Neighbours reported hearing screams of "let me out, let me out" in the middle of the night, and saw the "abnormally thin" Khyra in the garden in her underwear.
Police and social workers went to the home in Handsworth, Birmingham, several times but Gordon would not let them in, the court heard.
Jurors wept when they were shown pictures of Khyra taken before and after her death on 17 May last year. Handing over the first picture, taken in April 2007, the prosecution barrister, Timothy Raggatt QC, said: "That is Khyra Ishaq as she was in life, about a year before the events you are going to be concerned with.
"You see there a picture of a normally developing healthy girl. That is how her wider family remember her and describe her in life." Raggatt then asked the jury to turn to the picture taken at postmortem, which he suggested was reminiscent of something seen in an African famine. "That did not happen naturally – it was not a result of accident or disease. It was result of deliberate action. That is why there's a charge of murder."
The jury were shown photographs of a fully stocked kitchen and fridge. The court heard a lock was fitted high up on the kitchen door to keep the children out.
Raggatt said: "That household was not a household that was short of food, there was ample food in it for everyone. The supply of food was controlled, it was controlled by these two [defendants]."
The court was told Khyra died of an infection. But Raggatt said the fact she died of an infection was "really neither here nor there. The cause of her death was the physical state that she was in. In a nutshell, their [position] is exactly the same as anyone who kept a prisoner and sets out to starve them to the point where their life is at risk. It's just as much murder ... as if they had shot, stabbed, beaten or strangled Khyra to death."
Gordon, 34, and Abuhamza, 30, had a duty in law to care for Khyra but had betrayed that duty in every possible sense, while also mistreating five other children in their control, the prosecutor said.
"All of them, as well as being starved, were subjected to violence of differing degrees," Raggatt said.
The jury was told that Abuhamza, who denies murder, pleaded guilty on Wednesday to child cruelty charges relating to the five other children.
Gordon denies murder and five charges of child cruelty alleged to have been committed between December 2007 and 17 May 2008.
The court heard Khyra had lived a "normal and happy family life" while her natural parents were together. But the marriage failed and in 2007 Gordon and Abuhamza became a couple, with Abuhamza moving into the home.
In December 2007 things changed "dramatically", Raggatt said, when Khyra was removed from school and Gordon refused to admit visitors.
Summarising defence case statements prepared before the trial, Raggatt said Gordon had denied depriving Khyra of food.
"She is saying that none of this is her doing. Angela Gordon believes Khyra may have suffered from E coli or been poisoned by food given to her by her neighbours."
Abuhamza had acknowledged he was party to the unlawful killing of Khyra, Raggatt said.
The trial continues.
Two charged as Cuban spies in US
former US official and his wife have been charged with spying for the Cuban government over a 30-year period.
Washington DC residents Walter Myers, 72, and Gwendolyn Myers, 71, are accused of acting as illegal agents for Cuba and wire fraud.
The couple could face up to 20 years in prison if found guilty.
The arrest follows a sting operation by the FBI, in which an agent posing as a Cuban spy persuaded the couple to give him information about their activities.
Undercover agent
Mr Myers first began working for the US State Department in 1977 as an instructor at the Foreign Service Institute, where he was given security clearance to access information classified as Top Secret.
He was later granted an even higher security clearance, performing periodic work for the State Department's Bureau of Intelligence and Research (INR) until 1999, when he joined INR on a permanent basis.
He retired in 2007.
Mr Myers married his wife Gwendolyn in 1982. She worked as an analyst at a Washington DC bank, and was never granted security clearance by the US government.
In an affidavit released by the US Justice Department, offiicals have revealed details of the sting operation conducted by the FBI.
According to the affidavit, an undercover agent posing as a member of the Cuban Intelligence Service approached Mr Myers, telling him that he had been sent by the Cuban government to obtain information from him.
During a subsequent meeting, Mr Myers and his wife agreed to provide information about US government personnel to the undercover agent, and made statements about their past activities for the Cuban government, the affidavit alleges.
Mr Myers was first approached by the Cuban government in 1978, the Justice Department says, and he and his wife agreed shortly afterwards to provide information to Cuban intelligence.
Officials instigated the undercover operation after an analysis of Mr Myers' State Department computer hard drive revealed that in 2006-2007 he accessed more than 200 sensitive or classified intelligence reports on the subject of Cuba, which were unrelated to his official work as a senior INR analyst for the European region.
Washington DC residents Walter Myers, 72, and Gwendolyn Myers, 71, are accused of acting as illegal agents for Cuba and wire fraud.
The couple could face up to 20 years in prison if found guilty.
The arrest follows a sting operation by the FBI, in which an agent posing as a Cuban spy persuaded the couple to give him information about their activities.
Undercover agent
Mr Myers first began working for the US State Department in 1977 as an instructor at the Foreign Service Institute, where he was given security clearance to access information classified as Top Secret.
He was later granted an even higher security clearance, performing periodic work for the State Department's Bureau of Intelligence and Research (INR) until 1999, when he joined INR on a permanent basis.
He retired in 2007.
Mr Myers married his wife Gwendolyn in 1982. She worked as an analyst at a Washington DC bank, and was never granted security clearance by the US government.
In an affidavit released by the US Justice Department, offiicals have revealed details of the sting operation conducted by the FBI.
According to the affidavit, an undercover agent posing as a member of the Cuban Intelligence Service approached Mr Myers, telling him that he had been sent by the Cuban government to obtain information from him.
During a subsequent meeting, Mr Myers and his wife agreed to provide information about US government personnel to the undercover agent, and made statements about their past activities for the Cuban government, the affidavit alleges.
Mr Myers was first approached by the Cuban government in 1978, the Justice Department says, and he and his wife agreed shortly afterwards to provide information to Cuban intelligence.
Officials instigated the undercover operation after an analysis of Mr Myers' State Department computer hard drive revealed that in 2006-2007 he accessed more than 200 sensitive or classified intelligence reports on the subject of Cuba, which were unrelated to his official work as a senior INR analyst for the European region.
Uranium found at second Syria site - IAEA
The UN nuclear watchdog, the IAEA, says traces of undeclared man-made uranium have been found at a second site in Syria, at a reactor in Damascus.
The IAEA is investigating US claims that a Syrian site destroyed in a 2007 Israeli raid was a nuclear reactor that was not yet operational.
Separately, the agency says Iran is continuing to enrich uranium in defiance of the UN Security Council.
Both Iran and Syria deny allegations of illicit nuclear activities.
'Link unclear'
Last year, the IAEA (International Atomic Energy Agency) found particles of man-made uranium at the al-Kibar site in Syria, which was destroyed by Israeli missiles in September 2007.
Now in a confidential report obtained by the BBC, it says it has discovered new traces of uranium of a type not included in Syria's declared nuclear material.
The traces were found at a small reactor used for teaching in Damascus.
The IAEA says it is not clear whether there is a link between the particles found at the two sites.
In a separate report, the IAEA says Iran now has about 7,000 centrifuges - the machines used for enriching uranium. The agency says that Tehran is running almost 5,000 of them.
It also says that Iran has boosted its stockpile of low-enriched uranium (LEU) by 500kg to more than 1,300kg in the last six months.
David Albright of the Washington-based Institute for Science and International Security think-tank has said that Iran now had enough LEU to convert into high-enriched uranium (HEU) to make one atomic bomb.
However, he said Iran would need to overcome some technical hurdles to achieve this - a process that could take several years or more.
A senior official close to the IAEA says the agency has made little progress in its investigations in Iran and in Syria.
The agency has urged both countries to co-operate with its inspectors.
The IAEA is investigating US claims that a Syrian site destroyed in a 2007 Israeli raid was a nuclear reactor that was not yet operational.
Separately, the agency says Iran is continuing to enrich uranium in defiance of the UN Security Council.
Both Iran and Syria deny allegations of illicit nuclear activities.
'Link unclear'
Last year, the IAEA (International Atomic Energy Agency) found particles of man-made uranium at the al-Kibar site in Syria, which was destroyed by Israeli missiles in September 2007.
Now in a confidential report obtained by the BBC, it says it has discovered new traces of uranium of a type not included in Syria's declared nuclear material.
The traces were found at a small reactor used for teaching in Damascus.
The IAEA says it is not clear whether there is a link between the particles found at the two sites.
In a separate report, the IAEA says Iran now has about 7,000 centrifuges - the machines used for enriching uranium. The agency says that Tehran is running almost 5,000 of them.
It also says that Iran has boosted its stockpile of low-enriched uranium (LEU) by 500kg to more than 1,300kg in the last six months.
David Albright of the Washington-based Institute for Science and International Security think-tank has said that Iran now had enough LEU to convert into high-enriched uranium (HEU) to make one atomic bomb.
However, he said Iran would need to overcome some technical hurdles to achieve this - a process that could take several years or more.
A senior official close to the IAEA says the agency has made little progress in its investigations in Iran and in Syria.
The agency has urged both countries to co-operate with its inspectors.
won't walk away, insists Brown
Gordon Brown has unveiled a reshuffled cabinet and vowed to "fight on" with his "resilient" team to rescue the economy and clean up politics.
He admitted Labour had suffered "a painful defeat" in Thursday's polls but added: "I will not waver. I will not walk away. I will get on with the job."
And he unveiled Glenys Kinnock as Europe minister in a surprise move.
Two more cabinet ministers - Geoff Hoon and John Hutton - have stepped down but neither backed a challenge to the PM.
Speaking at a Downing Street media conference, Mr Brown said the current political crisis, fuelled by the Westminster expenses scandal "is a test of everyone's nerve - mine, the government's, the country's".
He added: "If I didn't think I was the right person to lead these challenges I would not be standing here.
"I have faith in doing my duty... I believe in never walking away in difficult times."
Mr Brown defended Chancellor Alistair Darling as a "very good personal friend" and said the idea that the pair were split over the economy was "ridiculous".
Three new ministerial councils - the Democratic Renewal Council, the Domestic Policy Council and an enhanced National Economic Council - would report weekly to the cabinet, said Mr Brown.
Mandelson's role
But speculation about his future continued as Labour MP Ian Gibson said he was standing down to force a by-election in Norwich North - and said he thinks Mr Brown's days "are close to being numbered".
BBC Political Editor Nick Robinson said if ministers had followed James Purnell in calling for Mr Brown to quit "we would today have had a new prime minister".
But the PM had still been forced to carry out an "emergency reshuffle based on his own personal survival", which had left him "not that much stronger".
In other moves, Alan Johnson becomes home secretary and Andy Burnham succeeds him at health.
Caroline Flint has quit as Europe minister, with Glenys Kinnock, wife of former Labour leader Neil Kinnock, who recently stood down as an MEP as her successor - she will be appointed to the House of Lords to be able to take the job.
Ms Flint is understood to have quit after Mr Brown failed to promote her to a full cabinet job.
In her resignation letter she launches a stinging attack on Mr Brown for allegedly treating women ministers "like female window dressing" and running a "two tier cabinet".
She said Mr Brown had "strained every sinew" of her loyalty to the government.
There has been speculation all week that Ms Flint was about to quit, yet she had taken to the airwaves to defend Mr Brown and declare her loyalty to him.
Labour's deputy leader, and minister for women and equality, Harriet Harman: "I can understand the frustration of any woman in politics, but I don't accept that Gordon doesn't take women in politics seriously - not at all."
Lord Mandelson's role has been expanded, giving him responsibility for higher education and training.
In what Nick Robinson said amounted to a deputy prime minister's role, he has also been given the titles of First Secretary of State and Lord President of the Council.
Mr Hoon has agreed to be the prime minister's European policy adviser ahead of the climate change talks in Copenhagen at the end of the year.
Bob Ainsworth becomes defence secretary and Peter Hain returns to the cabinet in his old job of Welsh Secretary. Ben Bradshaw joins the cabinet for the first time as culture secretary and Lord Adonis takes over at transport.
Universities Secretary John Denham succeeds Hazel Blears as communities secretary and Yvette Cooper replaces Mr Purnell as work and pensions secretary, with Liam Byrne replacing her as Chief Secretary to the Treasury.
Margaret Beckett and Tony McNulty are amongst those leaving the cabinet, the latter quitting his job as employment minister in an effort to clear his name over allegations about his expenses claims which are being investigated by the standards watchdog.
Election losses
John Hutton earlier quit as defence secretary and James Purnell quit on Thursday as work and pensions secretary - but no ministers have so far backed Mr Purnell's call for Mr Brown to "stand aside
Mr Hutton backed the prime minister and said he thought fellow Blairite Mr Purnell had made "the wrong decision" in calling for him to quit.
Alan Johnson, touted by some backbenchers as a possible leadership challenger, said he backed Mr Brown "to the hilt" to continue as prime minister.
He said he would "never say never" to becoming Labour leader at some point but could see no circumstances at present where he would mount a bid for the job.
He added that he was "really pleased" to be going to the Home Office, describing the job - regarded as something of a poisoned chalice - as an "invigorating challenge
But although no cabinet ministers have backed Mr Purnell, several backbench Labour MPs have continued to call for him to stand down.
Dr Gibson - stripped of the right to stand for Labour at the next election because of his expenses - said he would stand down now to trigger what is likely to be a potentially difficult by-election for Labour.
With the majority of results now in, the scale of Labour's defeat at the English local elections is also clear after it lost control of its four remaining English county councils.
According to the BBC's projected share of the national vote at a general election, based on the English local election results in so far, the Conservatives would poll 38%, the Lib Dems 28% and Labour would be third on 23%.
Conservative leader David Cameron said it showed his party was on course to win the next general election, adding that Labour had "lost the right to govern".
"We have clearly won this election and turned in some remarkably good results," he told BBC News.
Mr Clegg said Mr Brown's future as PM was "irrelevant" because the Labour government was "finished".
Labour is braced for another poor performance when the results of European elections are announced on Sunday.
And, in sign of the continuing febrile atmosphere, Nick Robinson said Gordon Brown had been forced to defend his expenses again over suggestions in the Daily Telegraph he claimed for electricity bills and service charges on two properties between 2005 and 2007.
A 10 spokesman insisted Mr Brown had complied with the rules at all times, a fact backed up by the Commons authorities, but he had agreed to repay about £180 "for the avoidance of doubt".
He admitted Labour had suffered "a painful defeat" in Thursday's polls but added: "I will not waver. I will not walk away. I will get on with the job."
And he unveiled Glenys Kinnock as Europe minister in a surprise move.
Two more cabinet ministers - Geoff Hoon and John Hutton - have stepped down but neither backed a challenge to the PM.
Speaking at a Downing Street media conference, Mr Brown said the current political crisis, fuelled by the Westminster expenses scandal "is a test of everyone's nerve - mine, the government's, the country's".
He added: "If I didn't think I was the right person to lead these challenges I would not be standing here.
"I have faith in doing my duty... I believe in never walking away in difficult times."
Mr Brown defended Chancellor Alistair Darling as a "very good personal friend" and said the idea that the pair were split over the economy was "ridiculous".
Three new ministerial councils - the Democratic Renewal Council, the Domestic Policy Council and an enhanced National Economic Council - would report weekly to the cabinet, said Mr Brown.
Mandelson's role
But speculation about his future continued as Labour MP Ian Gibson said he was standing down to force a by-election in Norwich North - and said he thinks Mr Brown's days "are close to being numbered".
BBC Political Editor Nick Robinson said if ministers had followed James Purnell in calling for Mr Brown to quit "we would today have had a new prime minister".
But the PM had still been forced to carry out an "emergency reshuffle based on his own personal survival", which had left him "not that much stronger".
In other moves, Alan Johnson becomes home secretary and Andy Burnham succeeds him at health.
Caroline Flint has quit as Europe minister, with Glenys Kinnock, wife of former Labour leader Neil Kinnock, who recently stood down as an MEP as her successor - she will be appointed to the House of Lords to be able to take the job.
Ms Flint is understood to have quit after Mr Brown failed to promote her to a full cabinet job.
In her resignation letter she launches a stinging attack on Mr Brown for allegedly treating women ministers "like female window dressing" and running a "two tier cabinet".
She said Mr Brown had "strained every sinew" of her loyalty to the government.
There has been speculation all week that Ms Flint was about to quit, yet she had taken to the airwaves to defend Mr Brown and declare her loyalty to him.
Labour's deputy leader, and minister for women and equality, Harriet Harman: "I can understand the frustration of any woman in politics, but I don't accept that Gordon doesn't take women in politics seriously - not at all."
Lord Mandelson's role has been expanded, giving him responsibility for higher education and training.
In what Nick Robinson said amounted to a deputy prime minister's role, he has also been given the titles of First Secretary of State and Lord President of the Council.
Mr Hoon has agreed to be the prime minister's European policy adviser ahead of the climate change talks in Copenhagen at the end of the year.
Bob Ainsworth becomes defence secretary and Peter Hain returns to the cabinet in his old job of Welsh Secretary. Ben Bradshaw joins the cabinet for the first time as culture secretary and Lord Adonis takes over at transport.
Universities Secretary John Denham succeeds Hazel Blears as communities secretary and Yvette Cooper replaces Mr Purnell as work and pensions secretary, with Liam Byrne replacing her as Chief Secretary to the Treasury.
Margaret Beckett and Tony McNulty are amongst those leaving the cabinet, the latter quitting his job as employment minister in an effort to clear his name over allegations about his expenses claims which are being investigated by the standards watchdog.
Election losses
John Hutton earlier quit as defence secretary and James Purnell quit on Thursday as work and pensions secretary - but no ministers have so far backed Mr Purnell's call for Mr Brown to "stand aside
Mr Hutton backed the prime minister and said he thought fellow Blairite Mr Purnell had made "the wrong decision" in calling for him to quit.
Alan Johnson, touted by some backbenchers as a possible leadership challenger, said he backed Mr Brown "to the hilt" to continue as prime minister.
He said he would "never say never" to becoming Labour leader at some point but could see no circumstances at present where he would mount a bid for the job.
He added that he was "really pleased" to be going to the Home Office, describing the job - regarded as something of a poisoned chalice - as an "invigorating challenge
But although no cabinet ministers have backed Mr Purnell, several backbench Labour MPs have continued to call for him to stand down.
Dr Gibson - stripped of the right to stand for Labour at the next election because of his expenses - said he would stand down now to trigger what is likely to be a potentially difficult by-election for Labour.
With the majority of results now in, the scale of Labour's defeat at the English local elections is also clear after it lost control of its four remaining English county councils.
According to the BBC's projected share of the national vote at a general election, based on the English local election results in so far, the Conservatives would poll 38%, the Lib Dems 28% and Labour would be third on 23%.
Conservative leader David Cameron said it showed his party was on course to win the next general election, adding that Labour had "lost the right to govern".
"We have clearly won this election and turned in some remarkably good results," he told BBC News.
Mr Clegg said Mr Brown's future as PM was "irrelevant" because the Labour government was "finished".
Labour is braced for another poor performance when the results of European elections are announced on Sunday.
And, in sign of the continuing febrile atmosphere, Nick Robinson said Gordon Brown had been forced to defend his expenses again over suggestions in the Daily Telegraph he claimed for electricity bills and service charges on two properties between 2005 and 2007.
A 10 spokesman insisted Mr Brown had complied with the rules at all times, a fact backed up by the Commons authorities, but he had agreed to repay about £180 "for the avoidance of doubt".
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