Governor Christie renews calls for pension system reforms
APRIL 21, 2014, 10:06 PM LAST UPDATED: MONDAY, APRIL 21, 2014, 10:06 PM
BY MELISSA HAYES
STATE HO– USE BUREAU
THE RECORD
Governor Christie continued to pressure Democrats to overhaul public employee benefits, telling callers to his monthly radio show that they’re the reason higher education grants and cancer research is being cut in his proposed state budget.
The Republican governor, who has pushed changing the pension and benefits plans during recent town hall-style events, was coy when asked how he would fix the problem.
“You don’t put all your cards out on the table at once,” he said on NJ 101.5 FM.
Christie spent an hour fielding questions about his budget, the state’s recovery from Superstorm Sandy and the closing of institutions for residents with developmental disabilities.
He declined to comment on specific proposals a panel of experts recommended to overhaul the Port Authority Monday, saying he’ll continue to work with New York Gov. Andrew Cuomo to improve the bi-state transportation agency. Christie also declined to say whether he’d appear before the Democratic-controlled legislative panel investigating the George Washington Bridge access lane closure controversy if subpoenaed.
Despite the lack of movement on the pension issue, Christie said Monday that he’s confident he can strike a budget compromise with Democrats by the June 30 deadline.
Christie has proposed a $34.45 billion budget for the fiscal year that starts July 1. The spending plan calls for a more than $1 billion increase, which would help cover a more than $2 billion payment into the public employee pension funds. Even at that rate, the state would be contributing only four-sevenths of the full payment, as it phases in increases under a deal struck with public employees in 2011.
– See more at: https://www.northjersey.com/news/governor-christie-renews-calls-for-pension-system-reforms-1.1000284#sthash.3fJtObTz.dpuf
Chapter 9 bankruptcy ?
He’s already been advised that he can’t do that, the fed courts ruled Detroit cant get out of paying public pensions to its workers thru bankrupcy
At the very least, we have to allow current pension plans to run their course, and stop new hires from joining the pension. Pensions have been all but eliminated in the private sector. It’s time for the public sector to join the real world. If you want to improve your retirement prospects, then make your own contributions to a 401(k) plan.
They can reduce benefits through. They have no choice: there are now twice as many retired city workers in Detroit as there are current employees paying into its two pension funds, contributing to the city’s underfunded obligations.
#2 i think you should go back and reread court records on the Detriot pension bankruptcy. This is a place where i agree with Christie 100%.
If the City of Detroit has been told that they can’t renege on pensions through bankruptcy, how are they supposed to pay them? The money doesn’t exist.
Good way to divert the attention from himself to the scare tactics of pension reform.
Declan
I’m a paid firefighter and proud to say so. FYI in 30 years of service I have contributed over 350,000.00 of my pay to the police and fire pension https://mentormedaddy.tumblr.com/post/83550444275. Back in the late 80’s early 90’s we were ove 100% funded. Now me whitmen has a great idea she needs cash for rebates and tax refunds. Hmmm let me take it from police and fire pensions. Then every govenor going foward decides to use the money that the towns contribute to balance there bugets and not fund the pension system the correct way. So our wonderful story telling govenor Christie only tells one side of the story. It is not the police and fire fault. In 30 years I have not missed one payment to our pension. Btw when I we a rookie I was allowed to miss the first few months but then I made double payments to catch up.
Btw I’m sure your Xmas bonus in one year is what I have contributed over my 30 yrs
Your right #8 I had to double up on my payment also. These people are all the same but when they need us its a different story.
Declan the money does exist, the city is trying to get out of paying it’s debt’s. They were told by a federal judge, bankruptcy would not relieve the already promised pensions. Gov. Crispy Crème was told by his legal advisory office that he could not declare a fiscal emergency because there is none. In the Detroit case now the city is trying to get the federal govt. to fill the pension hole. The feds bailed out the banks and general motors so why not the Detroit city govt.?
Who said I get a bonus? Just like my old pension, it no longer exists.
Like I said, where do you think the money is supposed to come from if it isn’t there?
Boys, boys… you can retire after 25 years, so those pensions have to last you for 30 years if you retire at age 52 like the state avg and you live to the average US male lifespan. Private sector workers retire at age 67. We all know the NJ pension fund got raided, but apart from COLAs, have your pension checks been reduced ? What about the cost to pay for your family healthcare, including for those 30 years of retirement ? That’s “pay-as-you-go” for taxpayers, and you’ve only been contributing a maximum of $20/month towards your health insurance premiums, and that’s just since 2009. You pay $15 drug co-pays, and $5 doctor’s visit co-pays. NJ state and local taxpayers subsidize that, and its estimated that healthcare alone will cost us $60 billion just in NJ for municipal workers and retirees. Is that fair ?
Is it fair to now take that all away from people who worked for 30 years. Well I guess in your mind its ok because you don’t need these retired workers anymore. It use to be in the USA a deal was a deal but not anymore. I hope when you retire this great government decides to take you 501 because they need it. Like Spain and Greece.
Lots of private sector workers have lost retirement benefits and pensions.
Overly generous promises and union contracts made in a ‘different world’ are financially unsustainable now.
To the poster who paid $350,000 into the retirement fund… if you live 30 years, how much will you get in your pension check? $3 million? or more if you include the survivor benefits for the spouse? Health benefits?
Those numbers…putting in 350k and getting 3m+++ back are why the system is broke.
( a friend who just went through a divorce is a cop and his pension value was calculated in the millions so the 3m is not an exaggeration)
Investing 101 doesn’t quite provide those capital returns in the real world.
It’s the end of the world as we knew it.
The financial collapse that happened several years ago had very far-reaching effects. Most people felt immediate effects in the form of shrunken portfolios, decreased house values, and unemployment. It wasn’t simply a few greedy Wall Streeters who were taking risks, but also homeowners, individual investors, and yes, politicians. The overwhelming belief was that the music would just keep on playing and the only way was up. Well, pension funds were also played around with. The belief was that funds could be used for other stuff, and hey, it could easily be put back after the other stuff gets done. Our politicians, regardless of party affiliation, aren’t experts. We can sit around and blame this person or that person, but the reality is that pension funds are no different from real estate, jobs, and investment portfolios. You can even send people to prison. It ain’t going to get anyone one penny back. I know it’s not easy to shrug your shoulders and walk away, but that’s really all you can do. Call it thievery, call it incompetence, call it wishful thinking, call it whatever you like. Yes, some people did better than others, and that’s how life is.
You avoided the questions: 1) have your pension checks been reduced ? and 2) is it fair that Village taxpayers subsidize your $20/month max contribution to your health insurance coverage and your $15 drug co-pays and $5 doctor’s visit co-pays ?
to 16 my cola has been taken away so yes it has been reduced, and it’s definitely fair because those benefits were negotiated for and voted on by a legally elected council.
The Federal Govt did bail out those entities, but it was done on the understanding that the funds would be re-paid, which they mostly have been. What you are suggesting is the Federal Govt give the money to shore up the pension shortfall. There is no way that this could be paid back. There are other similar States and municipalities with similar shortfalls. Should the Federal Govt bail them out, too? What about the taxpayers of States that do not have such a problem. Why is it okay to take their tax money?