March 18, 2010

ADDIEGO AND THOMPSON:
COMMITTEE APPROVAL OF PENSION
AND BENEFITS REFORM PACKAGE
A NECESSARY FIRST STEP

Assembly Republican members Dawn Marie Addiego and Assemblyman Samuel Thompson today called bipartisan passage of public employee pension and benefits reform legislation by the Assembly Appropriations Committee a significant step in helping reduce runaway government costs.

“Assembly Republicans have advocated for public employee pension and benefits reform for years,” stated Addiego, R-Burlington. “Four years ago, there was widespread bipartisan support for many of the reforms now moving through the Legislature, but, then-Governor Corzine and his administration opposed the measures.

“The state simply cannot afford to sustain this system as is. It’s a tremendous drain on our taxpayers and our state budget and unless we take action now, there will be no pensions left for those legitimate rank-and-file public workers who deserve the retirement they have earned and been promised,” said Addiego.”

The committee approved the following five pension and benefits reform bills:
• A-2459 - Makes numerous changes regarding unused sick leave.
• A-2460 - Makes numerous changes to public worker health benefits including a requirement that public workers and certain retirees contribute to their health care benefits.
• A-2461 – Makes numerous changes to public worker pensions including limiting enrollment to new full time employees who work at least 35 hours per week for the state or 32 hours for local government and schools.
• A-2499 - Prohibits lobbyists from enrolling in the state pension and benefits system.
• A-2505 - Limits the salaries and benefits for officers and workers at state and local authorities

“The bipartisan reform bills approved today are an important first step in reining in a pension system that is out of control and on the verge of insolvency,” said Thompson, R-Monmouth and Middlesex. “For far too long, taxpayers have been burdened with paying for public worker benefits they cannot afford.

“Most state workers understand the current pension system is unsustainable and these common sense reforms are not only needed to save New Jersey from economic collapse, but they will begin to align public employee benefits with those offered in the private sector and rightfully so.”

Bills A-2459 (S-4), A-2460 (S-3), and A-2461 (S-2) have been approved by the Senate and now head to the General Assembly for a full vote on Monday, March 22, 2010. Bills A-2499 and A-2505 will also be voted on by the General Assembly on Monday. If approved, they will head to the Senate for consideration.