Sign the Pension and Health Benefits Reform Act of 2008

It is almost Labor Day and Governor Corzine still has not signed into law the Pension and Health Benefits Reform Act of 2008, which was passed by members of the legislature back in June. As a result, the Associated Press is reporting that newly hired teachers and public workers are still getting the same generous benefits received in the past - the same ones that add to the cost of government and create a larger long-term debt load. These are also benefits that can't be taken away once offered. The chamber backed the reform measures and we urge the Governor to sign them into law immediately so that we can begin to realize some savings and put less burden on current and future taxpayers.

The reform act is only the first step in changing the system. In fact, the current modifications are pretty minor. The Chamber encourages the legislature to consider additional changes, such as increasing the retirement age of public employees to 65; replacing the defined-benefit hybrid plan for new hires with a defined contribution plan; negotiating one contract on behalf of all local workers where the state picks up the cost; and phasing out lifetime benefits for retirees, as has been done successfully in the private sector.

The state still has a long way to go to truly reform the system, but let's get started by having the Governor sign the Pension and Health Benefits Reform Act of 2008 into law.