For PERS and TPAF Employees with fewer than 25 years of service:
- Establishing the normal and early retirement age at 65.
- Increasing eligibility for early retirement from 25 to 30 years of employment.
- Adjusting the early retirement penalty to 3 percent for each year.
- Requiring the use of an employee’s average annual salary over the highest 5 years, rather than highest 3 years, when calculating their final retirement payout.
For PFRS & SPRS with fewer than 25 years of service:
- Changes eligibility for special retirement from 65% with 25 years of service to 65% with 30 years and 60% with 25 years.
- Require the use of an employee’s average annual salary over the highest 3 years, rather than the highest year, when calculating their final retirement payout.
For all active employees and retirees:
- Elimination of automatic statutory Cost of Living Adjustments.
- Any sick days that are accrued after the reforms are enacted would no longer be cashed out upon retirement.
Source: The Christie Reform Agenda: Attacking the Third Rail of Politics - Bringing Fiscal Sanity to NJ's Out-of-Control Pension and Benefits Systems
- Raising the retirement age from 62 to 65.
- Ending early retirement.
- Using a five year final average salary calculation with an 8 percent anti-spiking cap.
- Requiring employees to contribute six percent of their salary for the duration of their career.
- Providing a 1.67 percent annual pension multiplier.
- Vesting after 12 years instead of 10 years.
- Excluding overtime from final average salary.
- Excluding wages above the Governor's salary of $179,000 from the final average salary calculation.
- Eliminating lump sum payouts for unused vacation leave from the final average salary calculation.
- Prohibiting the use of unused sick leave for additional service credit at retirement.
Source: Governor Cuomo Introduces Pension Reform Legislation