All of the changes contained in the 2011 law that haven’t already taken effect will be fully implemented in just over 1 year. This law wasn’t designed to show a substantial immediate savings. It was designed to implement changes over a period of years and once ALL of those gradual changes were completed the impact of those changes going forward would have a positive effect on the states financial condition. Immediate solutions for long term problems, are just not reasonable or possible.
The full story on the Chapter 78, P.L. 2011 pension reforms… the problems are unfortunately still very much with us. Here are the facts: cost-of-living adjustments (COLAs) were suspended for current and future retirees and beneficiaries from July 2011, but there’s been no inflation in NJ since 2008, so this is not an issue. The increases in employee contribution rates towards their own pensions are only gradual: from 5.5% to 6.5% plus an additional 1% phased-in over 7 years through 2019 for TPAF and PERS; from 3% to 12% for JRS phased-in over seven years; from 8.5% to 10% for PFRS members; and, from 7.5% to 9% for SPRS members. Given the “special” retirement option available only to PFRS members, who can retire after 20-25 years and earn more from their defined benefit pensions for life in retirement then they earned in compensation while serving, they should be contributing more than 10%. As for the increased health benefit contributions, employees subject to any collective negotiations agreement in effect on the effective date of the law in July 2011, i.e. CBAs, that had an expiration date on or after the expiration of the health care contribution provisions of the law, haven’t been subject to the new higher contribution rates yet. In Ridgewood, only Fire is now paying a higher contribution amount, while the PBA and the REA haven’t yet agreed to new CBAs that would trigger higher health benefit contribution rates… so Ridgewood taxpayers have yet to see much, if any benefit from the pension reforms of 2011.
OK whats wrong with this picture???
WHY is anyone getting a pension????
I dont get one with my employer why should government workers working on MY dime get one???
WTF is going on here??
ENOUGH IS ENOUGH
The changes contained in the 2011 law that haven’t already taken effect will be fully implemented in just over 1 year? Not true. They phase in through 2019 for TPAF, PERS and JRS and the health benefit contribution increases only kick in from new CBAs after 2011. They are neither reasonable nor enough. Take the case of a recent PFRS retiree who has contributed less than 10% of the present value of his pension over the past 25 years. Assuming he has retired at an the average PFRS retirement age of 52, that means he could live for another 28 years if he makes it to the average male lifespan in the U.S. of 80 years, i.e. he will earn a defined pension benefit for more years than he actually served. Just last year the PFRS paid out almost $3 in pension checks for every $1 contributed by current employees. That’s not sustainable. If you want to take a “special” early retirement after 25 years instead of doing desk work then contribute more towards your own pension. Or limit the defined pension benefit to only 25 years, or equal to one year of pension benefit for every one year served. Or don’t start paying the pension until age 60. Or diminish the benefit amounts. The pension reform laws are clearly not enough, and as you readily admit above, taxpayers have yet to even see much benefit from them to date even four years later. If you think that’s a reasonable timetable, then you clearly are completely out of touch with the reality private sector workers face – no defined pension benefits for life, no essentially free Platinum health benefit coverage in retirement until age 65, and immediate solutions when they don’t fit long term solutions.
Sarlo would steal money from a baby to buy union votes
Does our absentee governor deserve a pension,his pay should be docked.