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RIBCO
Articles of Interest
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2006-07-31
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N.J. Worker Benefits May Be Trimmed |
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Posted by the Asbury Park Press on 07/28/06
BY JONATHAN TAMARI
GANNETT STATE BUREAU
TRENTON — Two lawmakers renewed their push Thursday to cut the cost of health benefits and pensions for state workers, one day before the Legislature is scheduled to begin a special set of meetings on how to reduce property taxes.
Sen. Stephen Sweeney and Assemblyman Paul Moriarty, both D-Gloucester, said they will introduce 15 bills aimed at cutting benefits for new public workers and for some already on the payroll.
Their proposals include raising public employees' retirement age to 60, from 55; requiring all state workers to pay a piece of their health care premiums; eliminating lifetime health benefits; and tightening laws to prevent pension abuses. Some of the changes would apply to all state workers, while others would be imposed on new hires.
"We'd like these to be part of the discussion," Moriarty said. "We think this brings serious reforms and real savings."
The Legislature is scheduled to begin a special session on property taxes today. The cost of public employee pensions and benefits will be a major focus of the session.
Public employee union leaders have argued that any changes to benefits must be made at the bargaining table. The current contracts for the largest unions expire next summer.
Carla Katz, president of Communications Workers of America Local 1034, one of the largest public employee unions in the state, said it would be unfair to create a "two-tiered" benefits system.
"All employees have a basic right to have equal compensation packages for the same jobs performed," Katz said. "Younger, newer workers shouldn't be made into second-class citizens in the workplace."
Ideas discussed before
Sweeney and Moriarty could not say how much they expect their proposals would save. Several were first floated in a 2005 report by a task force appointed by then-Gov. Richard J. Codey. The report said increasing the retirement age could save $58.3 million for state and local governments in the first year, with the numbers growing over time.
If every employee paid 10 percent of health plan costs, state and local governments would save an additional $489 million, the report said.
The plans listed in the report, however, have not gained steam in the Legislature.
Sweeney and Moriarty pushed many of these ideas during the recent budget brawl in Trenton but faced fierce opposition from public employee unions. Gov. Corzine sided with the unions, even appearing at one of their rallies.
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