Real Pension Reform on Both Sides of the Hudson

photoAlt No Matter Which Side of the Hudson You’re On, Republican and Democrat Governors Doing What’s Necessary to Restore Fiscal Sanity to an Out of Control System.

New Jersey Governor Chris Christie’s Proposed Pension Legislation New York Governor Andrew Cuomo’s Proposed Pension Legislation
Would Save the State of New Jersey $140 Billion in Pension Costs Over a 30 Year Period. Would Save the State of New York and Other Public Employers Outside of New York City More Than $93 Billion in Pension Costs Over a 30 Year Period.
Changes Would Include: Changes Would Include:

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

Press Contact:
Michael Drewniak
Kevin Roberts
609-777-2600

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