The debate over a new, less-generous pension package continued Thursday with unions protesting outside a panel supporting Gov. Andrew Cuomo’s proposal to offer new state workers the option of a 401(k)-style retirement plan.

“We’re very pleased that this is finally on the front burner,” said Tim Kremer, executive director of the New York State School Boards Association.

Peter Baynes of the New York Conference of Mayors said pension costs are “crowding out the ability of local governments to perform the duties they are supposed to do.”

But attendees at the panel, sponsored by the conservative Manhattan Institute, dove into the minutiae of Cuomo’s proposal, called Tier VI, which was included in his proposed budget. It would include a defined contribution plan, like a 401(k), where the state, municipality or school district would contribute 4 percent, and match up to 3 percent of employee contributions. It would also create a new “tier” in the defined contribution plan, in which the state guarantees employees a benefit for life, where employees contribute between 4 percent and 6 percent depending on their income.

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