N.J. Senate approves sweeping pension changes for public employees
February 22, 2010
By Lisa Fleisher

TRENTON -- Despite a show of force from hundreds of protesting union workers, the state Senate today easily passed legislation that would dramatically change public employee pensions.

The changes, which now head to the Assembly, are on a fast track and have already been endorsed by Gov. Chris Christie — who has said he wants even stronger reforms. The three bills each passed in 36-0 votes.

Tell Governor Christie to get his priorities right: cutting health care while giving tax breaks for the wealthy and special interests is wrong.

NJ Governor Chris Christie has declared a state of emergency, signing an executive order freezing funds and cutting programs and services vital to New Jersey’s working families that HPAE members provide at UMDNJ and throughout New Jersey.

In addition, the NJ Legislature introduced a package of bills for swift passage which will drastically impact the working conditions, health benefits and retirement security of HPAE’s public health care members at UMDNJ and Runnells.

On February 22nd, the NJ Senate unanimously passed this package of bills (S2-S3-S4) to increase health care co-pays, to limit participation in the state pension and health benefit plans and to increase health care costs to retirees.

The scope of the proposed legislation demands a thorough review process. These bills should not be rushed into enactment without fully evaluating their impact on the tens of thousands of nurses, mental health clinicians, medical researchers and health care professionals working at UMDNJ and throughout our public health care system in NJ. Our Legislature must respect the collective bargaining process to make the changes necessary to both retain a qualified health care workforce – and to balance the budget.

Our Governor is also making drastic cuts to the services we provide, through freezing charity care, the health care subsidy fund, family care, and cutting specific research and clinic programs. Now is the time to invest in NJ – and to make sure we keep qualified health care workers at the bedside of our patients, providing important community services and medical research.

Take Action Letter

Take Action Now! Tell your Legislator: Don't cut health care services. Don't cut the income and security of NJ health care workers.

Subject:
Invest in New Jersey! Invest in Workers!

Message:
Dear [ Decision Maker ],

I am writing to you as a registered nurse and member of Health Professionals & Allied Employees.

Recently, three bills were passed by the NJ Senate which will drastically impact the benefits and retirement security of our public healthcare workforces.

The scope of the proposed legislation demands a thorough review process. These bills should not be rushed into enactment without fully evaluating their impact on literally tens of thousands of nurses, mental health clinicians, medical researchers and health care workers working in our public healthcare system in NJ.

We share in the desire to make our public pension system sound. Many of our health care workforce, however, are part-time workers--either because of the budgets of our institutions, or the demands of raising our families. We ask that you respect the collective bargaining process to make the changes necessary to both retain a qualified healthcare workforce--and to balance the budget.

Our Governor is also making drastic cuts to the services we provide, through freezing charity care, the health care subsidy fund, family care, and cutting specific research and clinic programs. Now is the time to invest in NJ--and to make sure we keep qualified healthcare workers at the bedside of our patients, providing important community services and medical research.

Sincerely,
[Your name]
[Your address]

What's At Stake?

Governor Christie called a state of emergency signing an executive order freezing funds and cutting programs that are vital to New Jersey’s working families. Governor Christie attacked collective bargaining rights, cuts to Public Employees Benefits and to the programs and services HPAE members provide. The following cuts were announced:

$ 9 million in cuts to Department of Corrections for UMDNJ inmate medical contract
$ 1 million in bioterrorism preparedness
$ 12.6 million in charity care eliminating an additional $12.6 million in federal matching funds
$ 5 million in spinal cord research
$ 5 million in autism research
$ 5 million in cancer care research
$ 3 million in brain injury research
$ 10 million in health care subsidy funds
$ 2 million in AIDS grants
$ 8 million cut by restricting enrollment and freezing Family Care benefits
$ 367,000 cuts to UBHC
$ 100 million in public employee pension contributions eliminated
$ 18 million to Cooper for cancer care facility
$ 600,000 by suspending office of public advocate
$ 32 million cut in subsidies of NJ Transit
$ 475 million to school aid
$ 62 million to higher education

The NJ Legislature introduced a package of bills that are being moved for swift passage that attack Public Employee benefits.

S-2 to limit pension benefits (Scutari/O'Toole)

• Enrollment in the defined-benefit pension system limited to full-time employees of at least 35 hours per week at the state level or 32 hours in local government and public schools.
• All other new employees earning at least $5,000 annually could enroll in a 401(k)-style defined contribution plan. Current employees with fewer than 10 years of service would be allowed to switch from the defined-benefit plan to the defined-contribution plan, or withdraw from the system altogether.
• Pension benefits recalculated for future employees by dividing the number of years worked by 60, rather than the current 55. The number of "high salary" years for calculating benefits for public employee and teacher pension systems would be five years, not the current three.
• A "one job-one pension" rule for multiple job holders, with only the highest-salaried position counting towards a pension.

S-3 (Whelan-Doherty)

• All current employees would pay at least at least 1.5 percent of their salary towards their health benefits after the expiration of their current contract,
• All newly-hired employees to pay at least 1.5% of their base pension toward health benefits upon retirement.
• Employees would be required to work at least 35 hours per week to qualify for health benefits, with local and school employees having to work a minimum 25-hour-per-week standard.

S-4 (Buono-O’Toole)

• Limit sick leave payouts for all new local and school employees to $15,000
• Eliminate the current sick leave injury program.

SCR-1

• Would require the state to annually meet its pension obligation.
• If approved by voters in the November General Election, the state would have seven years beginning with the 2012 fiscal year to catch up to its full obligation.