newjerseynewsroom.com

The state Senate will begin the 2010 legislative session by seeking swift action on measures that would complete a sweeping overhaul of the public employee pension and benefits system first proposed nearly three years ago, Senate President Stephen M. Sweeney (D-Gloucester) announced Monday.

Sweeney made the announcement following a meeting with the Senate Democratic majority.

"Unless we take action now, New Jersey's pension system will implode, leaving thousands of rank and file workers penniless in retirement," Sweeney said. "As a union leader and someone who helps provide health and retirement plans to workers in the private sector, I know that a promise of a secure retirement must be a promise kept. But the state will have no option but to renege on that promise for its public employees unless we reform the system. It's time to finish the job we began nearly four years ago."

"We owe it to New Jerseyans to move forward on pension and benefits reform," said Senate Majoirty Leader Barbara Buono (D-Middlesex). "The state will never dig itself out of this budget hole or shore up its finances until we overhaul the way we provide for pensions and benefits."

The various state pension plans are underfunded by approximately $30 billion and due to the economic recession, the state and many cities and towns are facing the possibility of not being able to meet their annual pension obligations.

Sweeney said the Senate will review several reforms proposed by the 2006 Special Session on Property Tax Reform's Joint Legislative Committee on Pension and Benefits Reform. The bipartisan, bicameral committee made 41 specific recommendations to overhaul the public employee pension and benefits system to ensure its long-term viability for career state employees. Fifteen recommendations were enacted legislatively and other changes were achieved through collective bargaining.

The joint committee was the only one of four where all Democratic and Republican members agreed upon the final set of recommendations.

"The Senate must be prepared to tackle the unfinished business of the joint session," Sweeney said. "Three years after the special session ended, applying its bipartisan recommendations is more important than ever."

Among the concepts that Sweeney said the Senate must revisit include rolling-back a nine-percent increase legislatively enacted in 2001 which resulted in a significant increase in the pension fund's unfunded liability, increasing the number of "high salary" years used to calculate pension benefits from the average of three years to the average of at least five years, requiring all part-time employees to enroll into a defined contribution plan instead of the pension system and allowing all current non-vested public employees to opt into a defined contribution retirement plan.

"Getting a handle on the amount spent on pensions and benefits will help governments at all levels relieve the tremendous fiscal stress they face now and in the future," said Sen. Paul Sarlo (D-Bergen), Senate Budget and Appropriations Committee chairman. "Taxpayers and career public servants can both come out winners from a system that is built on a foundation of common sense."

Sweeney said he has asked legislative staff to begin drafting legislation on the remaining measures, so they can be introduced and ready for consideration by the Senate State Government Committee.

Gov. Chris Christie said Sweeney is sending a signal that bipartisan action is critical to reforming the pension and benefits system.

“I applaud the Senate leadership’s decision to complete the sweeping overhaul of the public employee pension and benefits system that was first proposed over three years ago,'' Christie said. "The only way to ease New Jersey’s fiscal pain and close our budget gap is by working together to fundamentally change the way government operates and today’s move is a very positive first step.”

— TOM HESTER SR., NEWJERSEYNEWSROOM.COM