Officials Sound Off on 'Landmark Legislation'

Gov. Chris Christie on Tuesday signed  that will trim the pensions and benefits of public employees. 

The bill, A-4133, will require teachers, school employees and state and local government workers to pay an additional 1 percent of their salaries toward their pensions as of July 1, and an additional 1 percent phased in over the next seven years for a total of 7.5 percent.

Police and firefighters will pay an additional 1.5 percent of their salaries toward their pensions for a total of 10 percent, as of July 1.  The bill moves the retirement age for new teachers and non-uniformed employees from 60-years-old to 65. To be eligible for early retirement, the employees now have to work 30 years instead of 25.

“Together, we’re showing New Jersey is serious about providing long-term fiscal stability for our children and grandchildren," Gov. Christie said at a recent press conference. "We are putting the people first and daring to touch the third rail of politics in order to bring reform to an unsustainable system."

Morristown Business Administrator Michael Rogers said of the reform, "As much as it's going to cost everyone–including myself–it's going to help the fiscal challenges we all face."

Rogers could not provide specific numbers yet on how what he called "landmark legislation" would affect town employees, but called its passage "very courageous."

Chris Kelly, business administrator for the Morris School District, said that with the approval of the district's 2011-12 budget earlier this year, taxpayers would not see much change as a result of the reform bill for at least another year, as least from the school district side of their taxes.

School employees were already required to contribute 1.5 percent of their salaries according to the budget, Kelly said. That is greater this year than the pension reform plan requirement of 1 percent.

"I don't see this being an issue, not this year," she said. "In future years, the contributions by teachers will offset some of the increases to health benefits. It will benefit the district. In the past the district–hence the taxpayer–had the burden of tax increases. This will help offset that."

With the Morris School District for two years, Kelly spent her previous 30 years in corporate America.

"I'm used to paying benefits," she said. "It's the law ... They (the teachers) knew this was coming."