Thursday, September 09, 2010
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Chamber applauds reining in public-employee benefits
Senate President Stephen M. Sweeney, Gov. Chris Christie and members of the Legislature are once again tackling the politically charged issue of public-employee benefits. What taxpayers and workers in the private sector have long recognized is that the generous benefits received by today's public employees were initiated at a time when their salaries were significantly less than their private-sector counterparts. These benefits were also provided at a time when many private-sector companies provided similar benefits to their employees, including defined benefit retirement plans and comprehensive health insurance at no cost, including during retirement. Times have changed! Over the years, our Chamber has been a strong and insistent voice for state government to reduce expenses by adopting best business practices. Through the work of our Board Council on Responsible Government Spending, we have provided 100 recommendations that provide a blueprint for the state to save $1 billion or more in taxpayer dollars. Our Phase II Board Council report studied the difference between benefits received by state versus private-sector employees. Our report concluded that, "While state government salaries have over time gained significant ground on their private-sector counterparts, the state government has failed to contain employee benefits consistent with the private sector." As we have testified on many occasions before the Senate and Assembly Budget Committees, the state can no longer afford to fund public-employee health and retirement benefits at their current levels, funded by business and citizens who pay some of the highest taxes is the nation. Today's economic climate makes changing public-employee benefits a must, not an option. The legislation passed unanimously in the Senate will make much needed changes to the pension system -- changes that will ensure that only full time employees receive pensions, that employees can collect a pension from only one job, and that pension benefit calculations are based on the five highest earning years. The bills will also require all public employees to contribute just 1.5 percent of their base salary toward their health insurance benefits (members of the Communications Workers of America and other public employees already contribute this amount), that only full-time employees receive health benefits, and that all public employees receive the same level of health benefits. I think many of us in the private sector would welcome paying just $16.78 per week for health insurance benefits (based upon the average teacher salary of $58,156). Unused sick time for local and school district employees would be capped at $15,000 and unused vacation time would also be limited. These reforms apply only to new employees, and would not take away benefits from current employees. The Senate bill package puts all public employees -- whether they work for state government, local or county governments, or for a school district -- on the same level. And, most of the benefit changes apply to future employees only. The Chamber applauds Christie, Sweeney, and the other 35 state senators who stood up for the taxpayers of New Jersey -- 10 percent of whom are jobless -- to vote for these fair, sensible and long-overdue reforms. Reach Debra P. DiLorenzo at jerseyddilorenzo@chambersnj.com |
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