In light of the current financial crisis facing the State of New Jersey, there has been much public discussion about the costs of employee benefits and pensions. Governor Christie has also proposed a number of measures to reduce the employee and related costs for public employees.
Proposals that will impact school districts across the State involve the freezing of current salaries, arbitration reforms, and requiring contributions to employee health benefits. The Star Ledger and Courier News have both reported the Governor's request to freeze salaries for the upcoming year. Additionally, the Legislature recently passed bills that seek changes in pensions, health benefits, sick leave and disability, and a Constitutional Amendment requiring a gradual “ramp-up” to fund pension systems.
These measures alone and potentially combined, will have an impact on employment salary, pension, and benefits. In fact, if enacted after August 1, 2010, these may have an impact for the rest of an employee's life.
Public employees would be wise to read more about these proposed changes and their potential impact, as well as consult with their personal retirement planning advisor.
More information about the specific bills can be read at http://www.njea.org/page.aspx?z=1050&pz=6.
March 24, 2010
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