Day after day, workers come in droves to apply for retirement. They often line up before dawn.
The rush has been set off in part by Republican Gov. Chris Christie's campaign in this cash-strapped state to make government employment — and retirement — less lucrative.
Since 2008, New Jersey and at least 19 other states from Wyoming to Rhode Island have rolled back pension benefits or seriously considered doing do — and not just for new hires, but for current employees and people already retired.
After telegraphing his intentions for months, Christie spelled out the details of his proposal Tuesday. They include: repealing an increase in benefits approved years ago; eliminating automatic cost-of-living adjustments; raising the retirement age to 65 from 60 in many cases; reducing pension payouts for many future retirees; and requiring some employees to contribute more to their pensions.
"We must reverse the damage caused by fairy-tale promises that have fattened benefits and pensions to unsustainable levels," the governor said.
To be sure, the looming benefit changes are not the only reason many public employees in New Jersey are retiring. Some say they want out for the usual reasons — to spend time with the grandchildren or go fishing, for example — or complain that government layoffs and other cutbacks are making work unbearable. But other employees figure that by retiring now, they can lock in certain benefits before it is too late.
Christie has warned that New Jersey's pension fund will go belly up unless something is done to close the $46 billion gap between how much the state expects to bring into the system and how much it has promised to workers. Other states' pension funds are in shaky condition, too.
The Pew Center on the States reported this year that in eight states, at least one-third of the future pension obligations for all public employees, including teachers, are unfunded. As of 2008, Pew said, state and local governments had pension obligations totaling $3.35 trillion — $1 trillion of that not covered by the future stream of government and employee contributions specified under current law.
1 comment:
Good for Christie...the public has long criticized (and lamented) the gravy train that a government job apparently is...HOWEVER--- I would LOVE to see HIS retirement and benefit package. I'd bet a lot of money that HIS retirement is a lot prettier and a lot more lucrative than the rest of the peasants he wants to control. And I'm also willing to bet that HIS benefits and retirement are NOT on the table for discussion or change. Typical politician....just like our national representatives have the very best health care system in the world and its FREE to them and their families for life, but "we, the people" get to go on the new health care plan (which, of course, is NOT good enough for Senators and Representatives, who are, by their own reasoning, MUCH better than the peasants who elected them).
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