Chris Christie promises to take ‘extreme measures’ on pension if Democrats don’t play ball

Chris Christie promises to take ‘extreme measures’ on pension if Democrats don’t play ball (via NJ.com)

LONG HILL — The day after his budget address, an upbeat Gov. Chris Christie returned to a message that has worked for him in the past: State finances are in trouble and only he can help. The Republican governor urged Democrats in the state Legislature…

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New Jersey’s Difficult Choices

Governor Chris Christie can no longer claim that New Jersey is a model for bi-partisan governance that Washington should emulate.

Yesterday, Senate President Steve Sweeney, playing the role of U.S. Senator Ted Cruz (R-Texas) before The Star Ledger’s Editorial Board, threatened to shut down New Jersey’s goverment if Governor Chris Christie doesn’t support a budget for the next fiscal year that makes the state’s payment into the pension system required by the “landmark” legislation that Sweeney and Christie hammered out in 2011, and that Christie has touted as one of his major accomplishments.

Sweeney is reacting to what Christie said about the pension system during his State of the State Address two weeks ago.

Here’s what Christie actually said:

Lastly, let me share with you one more, hard truth that makes this new attitude of choice necessary for New Jersey’s future.

We have discussed many exciting opportunities for investment in our state. K-12 education. Higher education. Crime prevention. Drug rehabilitation and job training. Health care. Infrastructure investment. Lower taxes. Job growth. All exciting, all of which, done responsibly, could make New Jersey an even greater place. But here is the simple truth. We cannot afford to do it right now.

Why?

Because of our pension and debt service costs. For the Fiscal Year 2015 Budget, the increase in pension and debt service costs could amount to as much as nearly $1 billion.

That’s nearly $1 billion we can’t spend on education. That we can’t invest in infrastructure improvement. That we can’t use to put more cops on the street. That won’t be available to improve access to health care. And for those who would advocate for higher income taxes like the ones I have vetoed before, remember that the amount raised would not even cover the increase in our scheduled pension payment and would undoubtedly make us less competitive in the job market nationwide.

These are the consequences of failing to engage in an attitude of choice. If we continue in an era where we believe we can choose everything, we are really choosing nothing. We need to have the conversation now about further changes to our pension system and to adding further to the state’s debt load. But the time to avoid this conversation and these choices is nearly over.

If we do not choose to reduce our soaring pension and debt service costs, we will miss the opportunity to improve the lives of every New Jersey citizen, not just a select few.

I am ready to engage in those conversations and help, with you, to truly create an attitude of choice. The result will be a better, smarter, stronger New Jersey. The results from our refusal to choose – a weaker New Jersey with a middle class burdened by even higher taxes. That is an abandonment of our duty.

Centuries ago, a philosopher wrote that “choice, not chance, determines your destiny.”  And this remains true for New Jersey today.

Our destiny is not set – it is the product of the choices we make. Our future is not set – it, too, is the product of the choices we make from this day forward.

So let us choose wisely.  And let us not fail to act.  Let us create an attitude of choice.

 

Christie concluded that we should choose to fund better schools, safer streets and creating opportunity “for every citizen, through an excellent education, a productive job, and a thriving community.”

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More Hypocrisy, Ignorance and Incompetence from Peters, Bayshore Tea Party Backed Primary Slate

‘Queen’ Barbara Gonzalez of The Bayshore Tea Party Group via facebook. Click for larger view

“There will be no double dipping when I am Sheriff,” Dan Peters, the Bayshore Tea Party backed candidate for sheriff said when he introduced himself to the group back in early April, and the last time he talked to MMM in person or on the phone.  Peters was referring to retired police officers working for the Sheriff’s Office, while also collecting a pension.

After repeated attempts to question Peters, MMM was finally successful in engaging the candidate on facebook a couple of weeks ago.  We asked him, given that he is collecting a disability police pension himself, if he would be working for free if elected Sheriff or if he would be giving up his pension.

Peters responded that he would implement a system whereby retired officers salaries are reduced by the amount of their pensions.  This would be a significant savings for the taxpayers, he said.

Not a bad idea, if he could pull it off.  But how could he?   He couldn’t.  Why would a retired police officer take a job with a $90,000 salary, for example, but only get paid $8000 if his/her $82,000 pension off set his salary?  He/she wouldn’t, especially if a similar job where both a pension and salary could be collected was available in another county.  Peters proposal would only result in Monmouth County losing out on the best talent.

For Peters idea (if it is indeed his idea) to work, would require statewide pension reform.  It would require legislation to be passed in both house of the legislature and to be signed into law by the governor.

Well, it turns out there is legislation pending in both the Assembly and Senate now that would accomplish the goal.   Assemblyman Declan O’Scanlon, who is also being challenged by the Bayshore Tea Party Group backed slate of candidates, is one of the primary sponsors of the bill.

Other Monmouth County legislators sponsoring the bill are Assemblywoman Caroline Casagrande as primary sponsor and Assemblywoman Mary Pat Angelini as cosponsor.  Senator Jennifer Beck is a primary sponsor in the Senate.

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Is Christie’s reelection inevitable?

Governor Christie will be in Aberdeen today to accept the endorsement of the Laborers International Union of North America (LIUNA) for his reelection bid.

Before wingnut conservatives get all crestfallen or disgusted, let me remind you that the Teamsters endorsed Ronald Reagan.   A labor union’s endorsement doesn’t automatically make that Republican a RINO, unless you consider Reagan a RINO.

Yes, this means that New Jersey is not likely to become a “Right to Work” state so long as Christie is governor,  It also means that we will continue to overpay “prevailing wage” on government funded and supported construction projects. As our friends at InTheLobby point out, it also explains why Christie has thwarted efforts to expand legalized gambling in New Jersey to race tracks, but those are all other stories.

What the LIUNA endorsement really means is that New Jersey Democrats are not likely to make a fight of the gubernatorial campaign in 2013.  Christie’s post Sandy poll numbers make him look invincible.  By locking up a major union endorsement early, Christie is creating an air of inevitability for reelection.

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Crafty Senator Sam Thompson wants Treasury to collect Judges “unpaid contributions” to pension and health benefit funds

Crafty Senator Sam Thompson

While the legislature is moving forward to put a Constitutional Amendment on the ballot that will overturn the State Supreme Court’s decision that Judges don’t have to pay their fair share of their pensions and health benefits under the reform legislation enacted last year, the ever crafty senator from Old Bridge, Sam Thompson, wants to stick the Judges ruling in Depascale vs The State of New Jersey high up under their robes.

In a letter to the Treasury Department sent this morning, Thompson noted that given that the Court ruled that Judges’ “salary” includes their pensions and health care, the men and women in black have been under contributing to those funds since 1982.

Thompson wrote:

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NJ Supreme Court rules for themselves, fellow judges

The New Jersey Supreme Court ruled 3-2 with Chief Justice Stuart Rabner not participating, this morning in Paul M. DePascale v State of New Jersey that the pension and health benefits reforms passed by the legislature and signed into law by Governor Christie last year violates the State Constitution’s provision prohibiting a reduction in judges salaries during their terms.  Thus, New Jersey Judges will not be contributing more to their pensions and health benefits, unless the Constitution is amended.

The issue now goes back to the Legislature.  Legislation putting a Constitutional amendment on the ballot this fall was held up in June pending the Supreme Court’s decision.

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MEET THE BIGGEST ‘TRIPLE-DIPPER’ IN THE NEW JERSEY STATEHOUSE: SEN. FRED MADDEN POCKETS $241,000 A YEAR IN PAY & PENSION

By Mark Lagerkvist, NewJersey.Watchdog.org

For state Sen. Frederick Madden Jr., the path of public service also has been a road to personal wealth.

Madden collects more than $241,000 a year in public salaries plus retirement pay. He gets $49,000 as a legislator, a $106,983 as a police academy dean and an $85,272 annual pension as a State Police retiree. 

Since he “retired” at age 48 nearly a decade ago, Madden has cashed $770,156 in New Jersey retirement checks. Among the 15 legislators who draw state pensions, no one pockets more than the senator from the state’s 4th Legislative District, which includes parts of Gloucester and Camden counties.  (See chart below.)

It may madden taxpayers, but double-dipping practices by public officials generally are legal under state law.

“There are those who have an issue with people retiring from one organization and going to work someplace else,” Madden told New Jersey Watchdog. “Obviously I don’t have a problem with people doing it. I’ve accepted that in my own personal life. I don’t have a problem with it at all.”

The problem is whether the state can afford such generosity. New Jersey’s pensions are underfunded by $36 billion, according to the State Treasury’s latest numbers. Other studies have estimated the shortfall as high as $144 billion.

‘Special Retirement’

How did Madden retire with a fat pension at 48? Other public employees in New Jersey typically must wait until 60 or older to retire with full benefits. Under federal Social Security, the full retirement age is 66.

The answer is simple: “Special Retirement.” It is a rule that only applies to law enforcement officials in the Police & Firemen’s Retirement System (PFRS) or State Police Retirement System (SPRS). The special retirement provision allows officers to retire at any age after 25 years of service, without reduced benefits.

“It’s basically a young person’s job,” said Madden. “The system is set up for them to retire early to keep the forces young. We have mandatory retirement at 55.”

Two months before he turned 21, Madden was hired as a $9,088-a-year state trooper who would climb up the organizational chart. He could have retired at 45 with full benefits, but Madden maximized his nest egg by staying for four more raises, three more birthdays and two big promotions to lieutenant colonel and deputy superintendent. Then he retired June 30, 2002.

“I had reached the top of my career in policing. It was in my best interest to move on, so I decided to retire,” Madden said.

Four months after his 48th birthday, Madden began receiving a SPRS pension for life. It will pay him more than $2.5 million, if he lives until age 80 — the average life expectancy for a 57-year-old white male in the United States, according to federal statistics.

“I’ve earned that,” said Madden. “I paid into that system like every other trooper. You can make it sound like I’m getting something I don’t deserve, and that’s wrong.”

Madden’s pension is based on 27 years of service and a final salary of $112,451 a year. Previous years of lower pay and smaller retirement fund contributions are not part of the calculation. Under the statutory formula, his pension pay is 67 percent of his final salary, plus cost-of-living increases.

The senator noted the State Police does not participate in Social Security. Employees do not contribute to the federal program and typically do not qualify for its retirement benefits.

One-Day Retiree

The first thing Madden did after he retired was return to the government payroll in a law enforcement job.

On July 1, 2002 — one day after he left the State Police — Madden started a new job as chief of detectives for the Gloucester County prosecutor. His new $105,000 salary, along with a pension of roughly $75,000, boosted Madden’s annual income to $180,000.

“There are a lot of positives to taking retirees that have strong resumes and productive work experience and placing them in other public jobs,” said Madden.

One state rule is supposed to prevent workers from temporarily retiring from public employment to take advantage of pension funds. A retirement only is considered to be legitimate, or “bona fide,” if “there is a good faith action to retire” and “there has been a cessation of employment of at least 30 days,” according to SPRS and PFRS handbooks.

If a retirement is not “bona fide,” the state can force the employee to return any benefits paid.

The rule often is ignored and seldom enforced. Previous New Jersey Watchdog investigations uncovered numerous examples of one-day retirements by officials who currently work for the state attorney general, county sheriffs and prosecuting attorneys.

Back to the State Police

In a twist of fate, Madden returned from his “retirement” to head the State Police temporarily as a result of someone else’s scandal. 

Gov. James McGreevey named Madden acting superintendent in October 2002 when Superintendent Joseph Santiago resigned amid allegations of “gross mismanagement.” The appointment lasted four months.

“One Friday morning, I showed up at the prosecutor’s office for work. That afternoon, I was in the governor’s office assuming command of the division,” recalled Madden.

It was good news for Madden’s paycheck. The Gloucester prosecutor gave him a $20,000 raise — upping his pay to $125,000 a year — then assigned Madden to the State Police on an “intergovernmental loan.”

Meanwhile, Madden’s state pension kept rolling in at a rate of $75,000 a year, boosting his annualized income to $200,000.

Triple-Dipping

When the State Police found a new superintendent, Madden quit the Gloucester County prosecutor in February 2003 to run for state Senate as a Democrat.

“I was thinking, ‘If they can do this job…’” Madden chuckled. “I think I bring morals and ethics and truthfulness to the seat. I had been policing my entire life, and I wanted to try something different.”

In a close election decided by recount, Madden beat Republican incumbent George Geist by 63 votes. One of the victor’s spoils was the $49,000 annual pay received by legislators.

In May 2006, Madden found a third stream of public income. He was hired as acting dean of the Gloucester County Police Academy with a $76,128 a year salary. Two years later, Madden was promoted to dean of the academy, a law enforcement training program at Gloucester County College in Sewell. His pay was boosted to $96,500 per annum.

“I have no problem balancing them,” said Madden, referring to his two jobs. He said he has flexible hours at his 35-hour-week college position and takes vacation time to attend Senate sessions when necessary.

He contends that state taxpayers benefit because he can hold two public positions in New Jersey concurrently.

“If I go across the bridge to Temple University (to work in Pennsylvania), those people get the benefit of my training and the college degrees that the people of New Jersey have invested in,” he said.

Madden’s police academy salary is now $106,374 a year. Cost-of-living hikes have boosted his annual pension to $85,272, while his legislative salary remains at $49,000.

Bottom line: Madden rakes in $241,255 a year from a state pension plus two public salaries. He said he is not earning additional pensions from the college or Legislature.

15 NJ Legislators Collect State Pensions

New Jersey Watchdog found 15 current legislators — six senators and nine Assembly members — who receive state retirement checks in addition to legislative salaries, according to public records. The nine Democrats and six Republicans receive an average of $43,000 in annual pension pay.

Not coincidentally, those who get the biggest checks are retirees of PFRS or SPRS. State pension formulas and regulations favor law enforcement officials over other public employees.

For example, if Madden had retired as a member of the Public Employees Retirement System (PERS) at the same age, salary history and years of service, his pension would have been cut in half.

Of the 15 lawmakers who receive state pensions plus legislative salaries, three are on the payrolls of other public agencies in New Jersey. In addition to Madden:

• Sen. Jim Whalen receives $154,637 a year — $70,477 as a teacher in the Atlantic City School System; $35,160 from PERS as a retired municipal official and $49,000 as a legislator.
• Sen. Robert Singer gets $88,404 a year — $5,000 a year as chairman of the Lakewood Municipal Utility Authority in Ocean County; $34,404 from PERS as a retiree of multiple governmental agencies and his $49,000 legislative salary.

# # #

STATE LEGISLATORS WHO COLLECT NEW JERSEY PUBLIC PENSIONS

New Jersey Watchdog’s research focused on current state legislators who draw retirement pay from state pension funds. Data are from pension, payroll and personnel records obtained from the New Jersey Department of Treasury, Civil Service Commission and local governmental bodies through state’s Open Public Records Act requests. Pension amounts and employment status are current as of December 2011.

Rible receives a pension for “accidental disability retirement,” which is not based on age or years of service. For details, click here for New Jersey Watchdog’s investigative report on Rible’s disability pension.

Key to abbreviations for state pension plans: PFRS – Police and Firemen’s Retirement System; SPRS – State Police Retirement System; TPAF – Teachers’ Pension and Annuity Fund; PERS – Public Employees’ Retirement System.

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More News On Our Unsustainable Pension System

NJ Watchdog reporter Mark Largerkvist released a report this morning about 125 “retired” police officers who are double dipping as employees of county prosecutors or the Attorney General.

The average age of the officers when they retired was 49.  On average they receive $79,000 in salary and $69,000 in pension payments annually.

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How can we sustain this system?

Wall Township Administrator Joseph Verruni is retiring from his $179,000 per year job, after 20 years of service, on June 1, 2012.   He is 54 years old.  His pension will be between $80,000 and $90,000 per year, according to a report in The Asbury Park Press.

This rant is not about Verruni. 

As Wall is a wonderful place, I’m sure he did a terrific job over the last 20 years.   I don’t necessarily begrudge him the $179,000 salary for the work he did (even though Monmouth County Administrator Teri O’Connor makes significantly less)  But he’s 54 years old, starting a new career in the private sector,  that will be supplemented by $2,500,000  if he lives another 30 years!   That doesn’t include the tax payer funded health insurance that will keep him alive, hopefully for his sake and that of his family, more than 30 years!

If Verruni collects $85,000 per year for 30 years, he will have “earned” an additional $127,500 for every year he worked as Wall Township’s administrator.

I really should have taken a government job when I graduated from Georgetown in 1980.

This is not about Verruni.  It is about a system that pays adults in the prime of their earning years the equivalent of full time wages not to work.  Like my high school buddy who retired from the Bergenfield Police Department at 53 and takes home $20 per month less per month than he did when he put the uniform on every day.  Or like the retired State Police Investigator, 47 years old, collecting  a pension of $84,300 per year, who is Acting President of Brookdale Community College with a salary of $150,000 per year.

This system is not sustainable and it is not equitable.

The pension and benefit reform package that Governor Christie negotiated with the Democratic Legislature is an improvement of the previous system.  Yet the new system is not sustainable over time either.  We’re not feeling any of the pain yet.

Over the next 30 years, the state pension contribution will be $4.9 billion per year.  The local government contributions will be $2.3 billion per year over the next 30 years.  Both figures are on average.   We’re “enjoying” the savings now with smaller pension contributions that must increase by $500 million per year until we’re “caught up” with all the contributions we haven’t made since 2000.

Unless there is significant economic growth, soon, we won’t be able to sustain this system without significant tax increases. 

Who is going to be left to pay those taxes?

If we’re going to have a pension system for government employees, we shouldn’t be paying out until the retirees are 65 years old, or older as life expectancies increase.

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Governor Chris Christie’s Landmark Pension Reforms Deliver $267 Million in Property Tax Relief to New Jerseyans This Year

Trenton, NJ – Governor Chris Christie today announced that the historic, bipartisan pension reforms he signed into law on June 28, 2011 will save New Jersey’s property taxpayers and local governments $267 million in Fiscal Year 2012. Today’s announcement includes $224 million in local taxpayer savings in the Police and Fireman’s Retirement Systems (PFRS), in addition to previously released savings estimates of $43 million in the Public Employee Retirement System (PERS), for a total savings of $267 million across municipalities, school districts and counties this year.

“This $267 million in savings is the direct result of our bipartisan efforts to take on the biggest challenges facing our state and deliver sustainable, long-term property tax relief to New Jersey’s families and job creators. Because we took action, New Jersey taxpayers are now seeing that real results will ease strained local budgets and bring costs under control at the local level,” said Governor Christie. “These savings are critical to getting our economy moving again and creating jobs, while also protecting the core local government services New Jerseyans expect and deserve.” 

This historic pension and benefits reform law provides more than $120 billion of savings on state and local government pension payments over the next 30 years. Due to the Governor’s commitment to reverse two decades of irresponsible neglect of the pension system, New Jersey’s taxpayers will now realize substantial savings over the next three decades.

The Governor’s comprehensive set of reforms means critical savings for state and local governments and real property tax relief for New Jerseyans.

·         $79 Billion in State Contribution Savings: Over the next 30 years, the state pension contribution will be $148 billion, a projected savings of nearly $80 billion. Without reform, the state was projected to contribute $227 billion over the same period.

·         $43 Billion in Local Government Contribution Savings: Over the next 30 years, local government pension contributions will be $70 billion, a projected savings of nearly $43 billion. Without reform, local governments were projected to contribute $113 billion over the same period.

“These initial savings are just a first installment of benefits that taxpayers will realize under the Governor’s landmark pension and benefit reform law,” said Treasurer Andrew Sidamon-Eristoff. “New Jersey communities, from the biggest to the smallest, will see savings as result of these reforms.”   

The $267 million represents local government savings from the projected costs of pension contributions in PFRS and PERS had Governor Christie’s pension reforms not become law. The statewide, year over year savings in pension costs experienced by local governments between fiscal year 2011 and fiscal year 2012 is approximately $84 million. 

A savings breakdown of Fiscal Year 2012 PFRS pension cost savings for each local government in New Jersey – municipalities, counties and other local government units – can be accessed at the Department of Treasury’s website here: http://www.state.nj.us/treasury/pensions/epbam/exhibits/pdf/2012-pfrs-comparison-revised-78.pdf

The local government savings breakdown for PERS, previously released on July 14, 2011, can be accessed here: http://www.state.nj.us/treasury/pensions/epbam/exhibits/pdf/2012-pers-comparison-revised-78.pdf

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