Summary
New Jersey taxpayers face a decades-long continuation of six- figure annual pension payouts and other costly retirement benefits promised to public employees.
The reason: State law guarantees that pensions for existing workers can't be altered. Even a package of pending legislation -- hailed as the remedy for a system that's short $45.8 billion -- would apply only to new employees and not to the current workforce of some 450,000.See the full content of this document
Extract
N.J. Taxpayers Owe Pension Fund
The guarantee, in a 1997 law signed by Republican Gov. Christie Whitman, has served to insulate public workers from wrenching economic realities that prevail in the private sector. Amid the national recession, for instance, 21 percent of Garden State companies suspended payments to 401(k)s, according to a September survey by the New Jersey Chamber of Commerce. Those companies are not obliged to resume the contributions or make up the difference.
"In private industry, for those not in a union environment, employers are free...See the full content of this document
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