Legislation sponsored by Senator Steven Oroho (R-24) to strengthen New Jersey’s public employee pension systems was advanced by the New Jersey Senate in a 35-0 vote.
The legislation, S-2810, requires the State to pay its annual pension contribution on a quarterly basis.
“The quicker we get the state’s pension contribution invested in the markets, the sooner we start earning a return,” said Oroho. “Making quarterly pension payments won’t cost the State more money, but it could provide the opportunity to earn an additional $100 to $200 million per year from our contribution and reduce our pension systems’ unfunded liability.”
My bill to strengthen state pension funds through quarterly payments was approved by the Senate https://t.co/WyV8jfnSEP
— Senator Steven Oroho (@stevenoroho) November 21, 2016
Oroho is a co-prime sponsor of the legislation with Senate President Stephen Sweeney and Senate Minority Leader Tom Kean.
Under the bill, the state would be required to make at least 25 percent of its pension payments by September 30th, 50 percent by December 31st, 75 percent by March 31st, and 100 percent by June 30th.
Oroho noted that S-2810 offers increased flexibility over prior versions of the legislation and a proposed constitutional amendment requiring quarterly pension payments.
“From an investment perspective, it makes good financial sense to make the biggest payment we can make as quickly as we can make it,” added Oroho. “This legislation balances our pension system needs with budgetary concerns by providing the Legislature and State Treasurer the flexibility to maximize our investment returns and account for swings in the economy that impact state revenues.”