The state of New Jersey has been facing fiscal problems. To address them, legislators should push pension reforms.
In a report published by Tony Howley in NorthJersey.com, Senate President Stephen Sweeney recommends that pension proposals are what the state needs. Howley stated, "If you live in New Jersey, you might have already been impacted. Our state has diverted funds from essential programs, such as road maintenance and teachers' wages, to make up for the pension shortfall. Think of the next time the vehicle encounters a big pothole on the road to work."
He expanded by saying, "Pension and pension payments will rise by $4.1 billion over the next four years, raising the debt load on future generations and crowding out investment on essential programs." As a solution, Howley endorses State Senate President Stephen Sweeney's pension proposal, Senate Bill 3753.
The plan involves a "stacked" retirement plan combining the pension with a contribution plan, an individual cash balance, and raising the retirement age from 65 to 67. In Howley's article, he states that the project would save $17.1 billion over the next 30 years in pension contributions, according to an actuarial study.
Senior Political Director of the radio station New Jersey 101.5 Eric Scott believes pension reforms in the state are necessary. He claimed in his post, "The heart of Sweeney's proposal is to transfer public employers and teachers into a 401(k)-style plan if they have fewer than five years of service credits. Sweeney still aims to eliminate top-level job insurance and increase the retirement age to 67." Scott also advised that after speaking with Sweeney, the Senate President was convinced reform was the only solution.
In a statement provided by Ralph Albert Thomas, CEO and Executive Director of the New Jersey Society of Certified Public Accountants, they are endorsing a fiscal policy for pension reforms to address issues.
In conclusion, the only way to address fiscal issues in New Jersey is to endorse and implement much-needed pension reforms.
