February 27, 2015

MORE WAR ON WAGES:

Christie's Budget: Flat Funding for Schools, Towns (HEATHER HADDON AND JOSH DAWSEY, Feb. 24, 2015, WSJ)

A plan released Tuesday by a commission convened by the Christie administration called for the current state pension system to be frozen, to align future benefits for state workers with those found in the private sector and to start a type of defined-benefit pension plan that more closely mirrors investment returns.

In return, the state would constitutionally guarantee annual payments into the pension system, which could begin at $2.6 billion a year and grow annually.

Mr. Christie's proposed budget, which includes no significant changes to tax policy, calls for a $1.3 billion payment into the state's underfunded pension system.

That is the largest single payment made under any governor, but falls short of the more than $3 billion originally scheduled for the fiscal year beginning in July.

State Democrats and public- sector unions criticized Mr. Christie's call for further changes to the pension system, saying workers already made concessions when the governor agreed to pay more into the pension system in 2011.

Posted by at February 27, 2015 4:53 PM
  

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