New Jersey Gov. Phil Murphy’s $44.8 billion budget proposal, unveiled last week, is a boon for labor and public sector pensioners, thousands of middle class residents and schools across the state.
New Jersey’s public worker pension plan has been underfunded for decades, but lawmakers and former Gov. Chris Christie began a ramped-up payment plan. Murphy wants to supercharge that plan and reach full payment a year early under the budget.
The payment would climb by $1.6 billion over the current fiscal year. The payment doesn’t translate to a boost in pensions for retirees. But it meets what actuaries have determined is the amount the state must pay to carry its share of the cost of pension payments to hundreds of thousands of retirees.
Author(s): Mike Catalini
Publication Date: 1 March 2021
Publication Site: Philadelphia Inquirer