Making Progress on Pensions

New Jersey lawmakers moved forward on six pension and benefits reform measures that supporters anticipate will help the state address rising health care and retirement costs.

The initiatives will go before the Senate Budget and Appropriations Committee this week, according to Jim Manon, spokesman for the Senate Democratic majority. The bipartisan measures passed though the Senate State Government Committee last week after Republican lawmakers introduced the bills in early June.

The six bills would restrict public employee benefits, including calculating pension benefits based on a worker’s final five years of service, as opposed to the last year of work; limiting employees who hold dual offices to one pension plan; and requiring future hires to work a minimum of 35 hours per week to become eligible for pension and health care benefits.

The reform measures could help the state tackle its retirement costs. New Jersey has an unfunded pension obligation of $25 billion and an unfunded other post-employment benefits liability of $68.7 billion.

Sen. Jennifer Beck, R-Mercer, a member of the Government Committee, said lawmakers from both parties are working on moving the initiatives forward, including Senators Stephen Sweeney, D-Salem, Budget Committee chairwoman Barbara Buono, D-Middlesex, and Nicholas Scutari, D-Middlesex, in addition to Republican Senators Tom Kean of Essex and Kevin O’Toole of Bergen.

“Strong leadership on both sides of the aisle was critical to the successful passage of this reform package of legislation,” Beck said in a press release. “Because of their leadership, the taxpayers’ pocketbooks and the future solvency of our retirement systems were protected today. I look forward towards voting in favor of these bills on the floor of the full Senate before the summer break.”

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