CIANJ Statement in Support of Common Sense Public Employee Benefits Reforms, 06/11/2008

CIANJ Supports Taxpayer-Saving Legislation to Modify Public Employee Pensions

Business group sees recently-introduced package as a step toward restoring long-term fiscal stability to New Jersey’s budget

Paramus, New Jersey – The Commerce and Industry Association of New Jersey (CIANJ) announced support today for legislation that would alter public employee pension programs to bring them more in line with private-sector practices and save taxpayer dollars. Specifically, the group praised three bills (S-1962, S-1964 and S-1969) that were introduced earlier this week, and will be considered by the Senate State Government Committee on Thursday.

The bills would, respectively, restrict the state’s defined benefits program to full-time employees; calculate retirement pay based on a worker’s average of five highest paid years; and limit state workers to pension collections based on only one job. The legislation would not impact workers presently in the pension systems.

CIANJ has long-supported such proposals as part of the solution to relieve New Jersey’s taxpayers of even greater long-term obligations.

“State workers serve New Jersey well. However, the current system is unsustainable and out of line with New Jersey’s private-sector,” said CIANJ President John Galandak. “We strongly support legislation that alters the status quo for the benefit of New Jersey’s overburdened taxpayers, both corporate and individual.”

The Association noted that there is precedence for making pension and benefit changes through the legislature. For example, in 2001 a 9% pension increase for state employees was passed by the legislature and not at the bargaining table. The group also stressed the need to make the proposed changes as part of this year’s budget.

“Expensive advertising campaigns do not change the fact that New Jersey needs to make basic changes to its pension program for future retirees, and that the state’s taxpayers need some changes to be made this year. Ignoring the problem only makes it worse,” Galandak concluded.

Watch CIANJ President John Galandak discuss the issue on New Jersey Now by visiting www.cianjvideo.org.