NJ AFL-CIO Supports Resolution to Make Pension Payment in July
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From the NJ AFL-CIO, June 5, 2015
New Jersey State AFL-CIO President Charles Wowkanech and Secretary-Treasurer Laurel Brennan expressed the federation’s support for a proposal by Senate President Stephen Sweeney and Assembly Speaker Vincent Prieto calling on Gov. Christie to make the state’s annual pension payment at the start of the fiscal year, rather than waiting until the end of the year.
We are grateful to our Democratic legislative leaders, Senate President Sweeney and Assembly Speaker Prieto, for continuing to fight on behalf of this state’s 800,000 active and retired public-sector workers. While this proposal will not solve our pension crisis, we have to do whatever we can – even if it’s a little bit here, a little bit there – to help restore the pension system to fiscal health.
Front-loading the payment would net the pension system an estimated $87 million in additional income by allowing the investment dollars more time to grow. The front-loading of investments is a standard good-business model practiced throughout corporate America. Since it doesn’t raise taxes, there is no good reason for the governor not to do it.
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