NJ passes Public worker Benefit Reform

[CLite]

The NJ assembly and Senate passed a benefit reform bill. Governer's administration claims $132 billion saved over 30 years. NJ website covers the key points.

Pensions
•Police and firefighters would contribute an additional 1.5 percent of their salaries toward pensions, for a total of 10 percent. Non-uniformed public workers, including teachers, would eventually kick in an additional 2 percent of their salaries, for a total of 7.5 percent.
•Cost of living adjustments would be eliminated for current and future retirees until the pension funds become stable, which is not expected until at least 2040.
•The retirement age for new teachers and other non-uniformed employees would be 65, up from 60, and they would have to work 30 years, not 25, to be eligible for early retirement.
•For new police and firefighters, pensions would be 65 percent of salary at 30 years, and 60 percent at 25 years. Current law is 65 percent of salary at 25 years.
•The state would be contractually required to make its annual pension payment, and unions could sue to force payments.
•An employee-manager board would be established to set contribution rates, retirement ages and other benefit levels, but only when the funds become stable and as long as the changes don’t have an adverse effect.

Health Benefits
•All public employees would pay a percentage of their health care premiums in a tiered system based on salaries.
•Current retirees would not be affected. Current employees with 20 years of service on the effective date of the act would not be affected when they retire, but would pay the increased contributions while still working.
•Unions would be able to renegotiate contributions levels, but not before paying the higher rates for at least four years.
•A board would be established to create new health plans by Jan. 1 that would offer fewer benefits at lower prices, including at least one high-deductible plan. The board would also look at co-pays, prescriptions and other items.

NYT reports assembly passes law

AP reports senate passes law

I'm glad we are taking steps to create a sustainable system. We can't keep living in a fairy-tale land pretending that all of these accrued liabilities from the last few decades are sustainable. I believe we will see a modest decrease in the standard of living over the next couple of decades.

 

[thraashman]

So it sounds like NJ is doing the intelligent thing to try to eliminate debt and not the political thing. You watching this Wisconsin?

 

[Vette73]

See the biggest thing I would look for if I was getting a good sized pension is this...

"The state would be contractually required to make its annual pension payment, and unions could sue to force payments."

A pension is only worth something if its funded. Seems like a good fair bill IMO. Pay a little more but it will be there when you need it.

 

[classy]

I am proud of Christie here. And did he did without all the blabbering. Good job here.

 

[CLite]

See the biggest thing I would look for if I was getting a good sized pension is this...

"The state would be contractually required to make its annual pension payment, and unions could sue to force payments."

A pension is only worth something if its funded. Seems like a good fair bill IMO. Pay a little more but it will be there when you need it.

I agree, fair is the way to go. The private sector is hurting big time and now it's time for the public sector to agree to some modest belt tightening in exchange for solvency of the fund.

I'm just upset that there are still crowds of thousands of people protesting what from what I can see is the only sane path forward.

 

[sunzt]

•The state would be contractually required to make its annual pension payment, and unions could sue to force payments.
+1
•An employee-manager board would be established to set contribution rates, retirement ages and other benefit levels, but only when the funds become stable and as long as the changes don’t have an adverse effect.
+1

 

[PokerGuy]

This seems like a rational choice, Christy did a great job, no thanks to the idiot unions trying to thwart him at every turn.

 

[piasabird]

First thing i would do is get rid of unions in the public sector. If you work for the government all unions should be illegal. Make all employees pay for part of their pensions using a matching system. No cadillac health care either.

 

[nageov3t]

my sister is directly affected by this.

she's not crying too hard, because even with the increases, she still pays significantly less for medical/dental insurance than her family would if they were under her husband's employer's insurance plan.

we've had a generation of politicians bipartisanly kowtowing to the unions and promising them the sun and the moon to get their votes and the bills are finally coming due.

 

[brencat]

we've had a generation of NJ Democrats kowtowing to the unions and promising them the sun and the moon to get their votes and the bills are finally coming due.

FTFY.

Have lived in NJ most of my life and yes, Christie did a great job -- proving that an articulate politician from the opposite political camp telling it like it is can get stuff accomplished despite the long odds and hostile interest groups. Keep it up sir!!

 

[rudder]

•Cost of living adjustments would be eliminated for current and future retirees until the pension funds become stable, which is not expected until at least 2040.

ouch.... but that is needed. 65% salary still seems very generous... despite the additional 1.5% contribution.

 

[BlahBlahYouToo]

 

[ProfJohn]

we've had a generation of politicians bipartisanly kowtowing to the unions and promising them the sun and the moon to get their union campaign donations and the bills are finally coming due.

FTFY

 

[nageov3t]

FTFY.

Have lived in NJ most of my life and yes, Christie did a great job -- proving that an articulate politician from the opposite political camp telling it like it is can get stuff accomplished despite the long odds and hostile interest groups. Keep it up sir!!

I don't recall Gov. Whitman doing anything but kicking the can down the road and while Gov. Kean was before my time, my understanding is that he was all about borrowing money to bribe the teachers unions.

 

[CPA]

Just another reason Christie needs to run for President. He would have my vote in a heartbeat.

 

[BlahBlahYouToo]

I am proud of Christie here. And did he did without all the blabbering. Good job here.

i can't help but think that as soon we are in good economic times, the gov/legislature is going to mess this all up by handing out unsustainable benefits again.

 

[CLite]

•Cost of living adjustments would be eliminated for current and future retirees until the pension funds become stable, which is not expected until at least 2040.

ouch.... but that is needed. 65% salary still seems very generous... despite the additional 1.5% contribution.

Yeah, I'm quite certain that provision is how the administration is coming up with the majority of the $132 Billion in savings over 30 years, it is a brutally logical provision.

 

[nageov3t]

Just another reason Christie needs to run for President. He would have my vote in a heartbeat.

I don't think he's nearly bland enough to make much headway in a national race.

 

[FDF12389]

:thumbsup::thumbsup:

 

[Doppel]

LOL, for the most part this is on the backs of new workers who weren't part of these negotiations because they don't work there yet.

 

[ProfJohn]

Hey... what happened to all our liberal members?

Must have this whole thread on ignore.

 

[nonlnear]

I saw no mention of whether overtime goes into pension calculations. If they managed to fix that, I would have expected it to make it into the key points...

 

[bfdd]

Looks pretty good, we'll see how it's implemented though.

 

[CLite]

Hey... what happened to all our liberal members?

Must have this whole thread on ignore.

Your two posts in this thread have been pathetic and petty. Go back to posting about Sarah Palin if you don't feel like contributing to the discussion on progress in NJ.

 

[CPA]

I don't think he's nearly bland enough to make much headway in a national race.

Or does he flipflop enough based on his audience.