The Senate State Government Committee has just advanced a package of CIANJ-supported public pension reforms. The full Senate is expected to vote on the reforms Monday.
The legislation makes significant changes to New Jersey’s underfunded public pension system. Some of the major changes include,
- Requiring current employees and future retirees to contribute at least 1.5% of their salaries toward health benefits
- Placing new hires who work less than 35 hours per week into a defined-contribution system
- Rolling back the 9% pension increase passed by the legislature in 2001
- Capping sick time cashouts at $15,000 upon retirement for all public workers
- Putting to the voters a Constitutional Amendment requiring the state to make its full annual payment to state retirement system
New Jersey’s public pension program is underfunded by an estimated $34 billion, and its unfunded health care liabilities are even greater. CIANJ urges the Senate to pass the package advanced by the Committee and passage by the General Assembly before this year’s budget introduction.
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