Dear Everyone Who Works For The Government: This Is Your Future
Robert Johnson | Jun. 8, 2011, 1:23 PM | 4,474 | comment 49


NJ Governor Chris Christie GOP



Image: AP

In an effort to balance his state's pension system, New Jersey Governor Chris Christie has reached a deal with the Senate cutting benefits for state employees.

Lisa Fleisher at WSJ broke the news.

Some key details:

Require current employees to give up more of their salary into the pension system.

Give up annual cost of living increases.

Pay a percentage of their health care premiums in a tiered system based on their salary.

Require new employees to work longer to get full benefits.

Contractually require the state to make payments into the fund.

Appoint a labor-management board system to be put in place to monitor the system.

Give up the governor's right to impose a contract and instead appoint a mediator if impasses arise.

Effective immediately teachers and state employees will increase their pension contributions from 5.5% to 6.5% with another 1% increase phased in over seven years.

State police, firefighters, and municipal law enforcement will increase their contributions from 8.5% of their salary to 10%.

Judges will see increases from 3% to 12% contributions.

Only current employees with less than 25 years in the system will be affected.

The plan hopes to make the pension system 80% funded in 30 years -- a rate considered ideal in state systems where money is constantly coming in.

Read more: http://www.businessinsider.com/new-jers ... z1OieYuypU


Kathyet