Union Leaders Respond to Christie’s Call for More Pension Reform

Leaders of NJ's unions say that members have already compromised with their pensions to help the state.

NJ Spotlight News | February 26, 2014 | Politics

By Lauren Wanko
Correspondent

New Jersey Firefighters Mutual Benevolent Association’s Eddie Donnelly is frustrated by Gov. Chris Christie’s call for more pension reform.

“It’s important for us to let the people of New Jersey know we have shared in this sacrifice. We have given, we are continuing to give. We did not cause the problem,” Donnelly said.

Gov. Christie yesterday said his budget proposes making a record $2.25 billion pension payment, but due to the state’s pension, health benefit and debt obligations, only 6 percent of new spending can be focused on areas like education, health care and tax relief.

“Even though this $34.4 billion budget represents an increase of 3.5 percent over what we spent last year, 94 percent of that increase, is taken up by three things — pensions, health benefits and debt service. Nine out of every 10 dollars of new spending this year goes to fund these three entitlements,” Christie said.

“They’re not entitlements. These are negotiated items we have signed up for when we took this job,” Donnelly said.

Since the 2011 pension and health benefits reform, firefighters now pay 10 percent toward their pensions and up to 35 percent toward the cost of their health care. And there are no cost of living increases for retirees.

“There’s nothing more we can give,” Donnelly said.

“There is no new information here about the pension. He knew that they were phasing in the amount they had to pay for the pension in 1/7 increments and that pension payment was going to balloon. He knew that in 2011 when he said we made the hard choices and the Jersey Comeback,” said Hetty Rosenstein of the Communications Workers of America.

NJEA’s President Wendell Steinhauer said he is pleased with the Governor’s promised pension funding payment and the increase in school funding.

“Let’s be clear on one thing. The pension payment went from 2/7 to 3/7, a very predictable rate. That was the law he signed. Everyone knew he was going to that. There was no surprise, there is no explosion here,” said Steinhauer.

As for Donnelley, he says he’ll continue to work with legislators to ensure there are no are further pension reforms.