Direct Relief Expected to be Seen from Pension Reforms This Year

TRENTON – Last month, Governor Chris Christie signed into law historic legislation to enact his pension and benefit reform proposals to restore fiscal sanity to New Jersey’s broken systems. This year, New Jersey’s overburdened property taxpayers and local governments will begin getting direct and immediate relief from the implementation of those reforms, resulting in $43 million in pension cost savings across local governments for Fiscal Year 2012 budgets. This relief is the first realization of $43 billion in projected local government pension savings over the next 30 years – part of over $120 billion in total projected savings over the same period.
“Because we prioritized long-term fiscal stability and acted to fix these broken systems, taxpayers and local governments are now seeing immediate savings this year. Municipalities, counties, school districts and all local governments will now have these savings to fund critical services, keep teachers in the classroom, and provide property tax relief,” Governor Chris Christie said. “By focusing on the big issues facing our state and daring to touch the third rail of politics, we are making huge strides in easing the property tax burden on our people and making our state affordable again. The results for local government and overtaxed families will be immediate and lasting.”
The Governor’s comprehensive set of reforms means critical savings for state and local governments and real property tax relief for New Jerseyans.
•$79 Billion in State Contribution Savings: Over the next 30 years, the state pension contribution will be $148 billion, a projected savings of nearly $80 billion. Without reform, the state was projected to contribute $227 billion over the same period.
•$43 Billion in Local Government Contribution Savings: Over the next 30 years, local government pension contributions will be $70 billion, a projected savings of nearly $43 billion. Without reform, local governments were projected to contribute $113 billion over the same period.
Beginning this year, New Jersey’s taxpayers will enjoy these substantial savings over the next three decades because of the Governor’s historic campaign to reverse two decades of neglect of the state’s pension funds.
A savings breakdown of Fiscal Year 2012 pension cost savings for each local government in New Jersey – municipalities, counties, school districts and other local government units – can be accessed at the Department of Treasury’s website here: http://www.state.nj.us/treasury/pensions/epbam/exhibits/pdf/2012-pers-comparison-revised-78.pdf