NJBIA Chief Government Affairs Officer Chrissy Buteas talks with TV host Larry Mendte about replacing existing state pensions with 401(k)-style retirement plans to help balance New Jersey’s underfunded pension system.
The interview was broadcast on the talk show recently.
Earlier this year, Senate President Stephen Sweeney put together an advisory panel of economic and tax experts to make recommendations for fixing New Jersey’s taxes and finances. One of the 25-member Economic and Fiscal Policy Workgroup’s recommendations is moving some public employees into a 401(k)-style retirement plan instead of the underfunded New Jersey pension system and providing them with a more affordable health benefits plan.
YES, GOVT EMPLOYEES SHOULD RECEIVE A 401K PLAN, WHAT A GREAT IDEA!
Excellent idea to change from Pension to 401(k)! The only problem is that the State of New Jersey would have to actually fund the 401(k)’s …. Does anyone really believe that would happen? I think not …
Cop out to the hard working public sector employees who were lied to about the states commitment. If you for 17 years did not fund the pensions to employees in the private sector, all the fiduciaries would be serving time in jail.
The Government cannot offer 401k style pensions. According to ERISA, you must act as a Fiduciary. The Government cannot act as a Fiduciary. Additionally this will not solve the problem. Pension debt is still owed. This will only slow the debt growth.
So why does everyone have to wait until age 62/65 to receive their pensions EXCEPT for police. Retired police start receiving their pensions at age 45-50 as soon as they get their “20 and out”. The MASSIVE cost to local municipalities is never discussed. It is ALWAYS about the teachers. Why are police paid $125000 per year in small towns with little to no violence. Why are police budgets never analyzed like school budgets?
Let’s start talking about the REAL hidden problem. A topic everyone is afraid to discuss.
Sadly, this is another disingenuous “fake” solution. Do the research, other states have tried this maneuver, and in short order found themselves in an even more severe economic state, thus wanting to switch back to Pensions. Simply put, the initial costs are substantive, and ultimately don’t provide for enough money coming in from the bottom (contributions), to sustain the money going out at the top (current retirees)
yes 401K, property tax relief, this might help me stay here in Jersey instead of moving out.