Reform Suggestions

For those interested in looking at recent reform recommendations made in New Jersey prior to Christie becoming governor take a look at the NJLM article The Local Take on the Governor's Benefit Review Task Force Recommendations and the Corrections of Pension Errors Report. The latter report contains this remark:

The Task Force took a partial look at age of retirement without recognizing the basic problem. The Federal Social Security System years ago recognized extended longevity of individuals and changed the full retirement age. The fact that Americans are living longer is well recognized and something all pension systems should deal with on a prospective basis. Any recognition should apply across the board. For example, the State Police Retirement System permits officers to retire after 20 years of service at 50% pay regardless of age. The results of such a liberal and rich benefit program has resulted in 8.2 retired officers for every 10 officers working. In the next five years, there will be as many retired officers, for which the State must fund a full pension, as there are working officers. Most all of the retired State Police take another full time job after retirement while collecting a state pension. This same situation is resulting in the Police and Fire Retirement System. Without a minimum age before one is eligible for retirement, the accrued liabilities and funding problems continue to grow exponentially. The Task Force neglected to recognize the funding problems associated with the State Police Retirement System, the PFRS, Judicial and other retirement systems where the age restrictions if any at all are much lower than the age requirements for PERS and TPAF. The League suggests a new retirement age be established for all systems on a prospective basis. The Task Force which accused the Legislature of using gimmicks to solve problems attempted the same approach relative to PERS and TPAF while ignoring the other systems. The League believes there should be uniform and equal standards which apply and are implemented for all systems