New Jersey Governor Christie Calls for Pension Reform

Tuesday, 25 Feb 2014 06:18 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
New Jersey Governor Chris Christie will call for a new round of public pension reform when he presents his fifth state budget on Tuesday, according to remarks released in advance.

Christie, a Republican, worked with the Democrat-led legislature in 2011 to make changes to retirement systems for public employees. But the changes did not go far enough to stem the tide of rising costs for pension and health care benefits, Christie said in the remarks. New Jersey must make a $2.25 billion payment into its pension system in fiscal 2015, which begins July 1.

"The problem isn't going away by itself. We must do what we were sent here to do by the people - lead and act decisively once again," he said in the remarks.

Under the previous reforms, the state's pension contributions have been rising by a set amount each year, to culminate at $4.8 billion in fiscal 2018 in an effort to make up for years of underfunding.

Pressure from rising fixed costs, including pensions, comes as New Jersey's economic recovery lags the rest of the nation, with revenues that could fall $400 million short of projections by the end of the fiscal year.

Moody's Investors Service lowered its outlook on New Jersey's Aa3 rating to negative in December, in part because of the pension. The credit rating agency also cited lower-than-expected cash balances and revenues, as well as a persistent structural gap.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Cameron: We'll Seize Passports to Fight Jihadists

Monday, 01 Sep 2014 15:00 PM

British Prime Minister David Cameron said he will force airlines to share flight-lists with security services and give p . . .

While Obama Ponders ISIS Action, UK's David Cameron Takes Charge

Monday, 01 Sep 2014 12:15 PM

While Great Britain's Prime Minister David Cameron cut his vacation short to deal with the Islamic State (ISIS) crisis,  . . .

Sen. Mike Lee Pleads: Abolish Common Core

Monday, 01 Sep 2014 12:52 PM

Sen. Mike Lee has called on Americans to join him in the effort to abolish the federal Common Core education standards i . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved