Long-Term Reform is Key to Solving Fiscal Crisis
Senator Joseph Kyrillos, R-District 13, issued this statement urging the governor and Legislature to pass a bipartisan pension reform package along with the Fiscal 2009 budget:
“Getting our fiscal house in order requires reforms that will make a lasting difference in how state government operates,” Kyrillos said. “There’s no better time to pass such reforms than at budget time, when legislators are intensely focused on our current financial crisis.
“Pension reform is being championed by a bipartisan group of senators committed to making Trenton pension policies fairer to the children of New Jersey, who will pay crippling bills for retiree benefits when they grow up if common-sense steps aren’t taken today.”
The reform package includes:
S-1964 sponsored by Senators Steve Sweeney (D-District 3) and Kevin O’Toole (R-District 40) – Pension benefits would be based on the five highest salary years, not the current three. Total savings between fiscal 2009 and 2022 are estimated at $280 million.
S-1962 sponsored by Senators Barbara Buono (D-District 18) and Tom Kean (R-District 21) – Employees would have to work at least 30 hours a week and earn more than $5, 000 to get pension credit for a job. Today, political appointees who make as little as $1, 500 a year serving on obscure commissions get credit.
S-1965 sponsored by Senators Nicholas Scutari (D-District 22) and Joseph Kyrillos (R-District 13) – Credits for health benefits provided to retired local employees would be accrued only if they put in more than 35 hours a week. The current requirement is 20 hours.
S-1969 sponsored by Senators Barbara Buono (D-District 18) and Kip Bateman (R-District 16) – Nothing bans a worker from holding several positions that qualify for pension credits. The law now provides a pension for each job held by an individual. This bill would require payouts for new employees covered by the state employee or teacher retirement pension be based on only one job. This bill will discourage so-called “no-show jobs” granted only to boost the size of pension payments.
S-1963 sponsored by Senators Sandra Cunningham (D-District 31) and Anthony Bucco (R-District 25) – Requires workers eligible for health care benefits from more than one government entity to choose coverage from only one.
S-1966 sponsored by Senators Steven Oroho (R-District 24) and Steve Sweeney (D-District 3) – Bans the purchase of out-of-state pension credit for use in qualifying for state health benefits upon retirement. Military years would still be eligible.
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- Kean: Employees Must Work 35 Hours to Reap State Pension Benefits
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June 12, 2008 - Oroho Bill Prohibits Use of Out-of-State Time for N.J. Benefits
June 12, 2008 - Bateman: Pick One Job for Retirement Benefits
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June 23, 2008
