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N.J. lawmakers clash over forcing bigger pension payments

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By Samantha Marcus | NJ Advance Media for NJ.com
on January 07, 2016 at 7:31 PM, updated January 08, 2016 at 8:19 AM

TRENTON — State Senate President Stephen Sweeney and labor leaders on Thursday defended his proposal to constitutionally enforce payments into the public pension system against arguments it’s a gift to special interests that will shackle New Jersey’s finances.

The scrap between Sweeney (D-Gloucester) and labor leaders vs. Senate Minority Leader Tom Kean Jr. (R-Union) and business lobbyists centered on what would be worse: a mandated pension contribution that would eat up so much money the state couldn’t respond to fiscal emergencies, or a pension system that continues hurtling toward insolvency.

Sweeney, the Democrat leading the charge on the amendment, told the Senate state government committee it’s in everyone’s interest to pay the bill now. Should a pension fund run out of money, the state would have to pay retirees’ pension benefits out of pocket, he said.

“If we don’t do this, by 2026 or 2027, when the pensions go broke, it’s nine or ten billion dollars. And that’s coming out of the budget. Directly out of the budget,” Sweeney said. “That’s armageddon.”

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