Lurching Toward Real Reform

Sen. Barbara Buono yesterday announced her support for undoing a legislative gift to retired state employees, and for creating savings for New Jersey's overburdened taxpayers.

In 2001, as the state approached legislative elections and the economy was on more stable grounds, the legislature decided to do a favor for retired state workers. At the time, the formula for the amount of money a worker would receive in their retirement years was the number of years worked divided by 60 (n/60). For example, an employee working 30 years would receive half their salary during retirement (30/60=50%).

That changed in 2001 when the legislature acted unilaterally - not through the bargaining table - and changed the denominater in that equation to 55, which is where the formula still lies (n/55). That same worker with 30 years of service now gets 55% of their salary in retirement (30/55 =55%). The benefit increase did not only extend to those currently on the payroll, but to all retirees; even those who were living in Florida for 15 years.

What the legislature giveth, Senator Buono proposes the legislature can taketh back. CIANJ supports the roll back, as New Jersey needs to bring its retirement system more in line with the private sector and we applaud Senator Buono for showing the political courage to re-introduce the idea before the legislature.

As we maintained during the special session on property taxes, rebate checks are no substitute for the fundamental reform necessary in this state. Sen. Buono's proposal is a step forward in that effort.