Pension Crisis

As reported by, Governor Christie said his last budget proposal that will be revealed later this month will include a pension payment that meets the promised contribution schedule.  To this end, Christie said the payment will be a $650 million increase over last.  At that time, Christie proposed a $1.86 billion payment to the declining government worker pension system that he ultimately approved in the final budget sent to him by lawmakers.

“Yeah,” Christie responded when “Ask the Governor” host Eric Scott asked whether this year’s budget would include the full scheduled payment for the year.  Christie is scheduled to give his final budget address on February 28.  “It is a challenge,” Christie said. He was referring to the ballooning pension payment weighed against the other spending priorities for the State.

The Governor said he’s “85 percent done” with the proposed budget and doesn’t “think they’ll be any bug surprises.”  But when Scott asked if pension and health benefit reform or school funding reform would work its way into the budget, Christie responded: “Could be. Stay tuned”

Last year, Christie announced he would contribute $1.86 billion into the pension system.  The proposed payment was the largest in New Jersey history, but also just 40 percent of what actuaries recommended. The Governor ultimately signed the $34.8 billion budget lawmakers sent him that closely resembled his original proposal, including the $1.86 billion pension payment.

Please continue to check this blog periodically to ascertain updates regarding the proposed pension payment.  As we know, the amount of the pension payment has spawned legal challenges in the past and has a direct impact upon all New Jersey Public Safety Officers.