Unions: Hands off benefits

Thousands gather to oppose legislative efforts for pension reforms.
Tuesday, December 12, 2006 • By Martin C. BrickettoThe Express-Times

TRENTON | About 12,000 teachers, firefighters and other public employees converged Monday on the Statehouse demanding legislators bury proposed pension and benefits reforms, described by others as a cornerstone in fixing New Jersey's property taxes.

But the fate of those reforms, largely targeting future employees, appears to hinge on negotiations between Gov. Jon Corzine and public employee unions, not votes in the Senate or Assembly. Top Democrats met Monday and struck a conciliatory note following a weekend that left the reforms in question.

Addressing a sea of red foam hands sporting the words "Back Off," speakers during the afternoon rally sponsored by the New Jersey Education Association blamed the Legislature for a future funding gap in the state's pension system of at least $18 billion.

"We will not be the scapegoats for a Legislature that has mismanaged its finances year after year," said NJEA Vice President Barbara Keshishian. "We did not create this mess."

Union leaders reinforced their call with the threat of action at the polls in November, when all 120 legislators are up for re-election.

"If we don't get them to do what's right, than we're going to work next November to replace them," said Harold A. Schaitberger, general president of the International Association of Firefighters.

The proposed changes upsetting teachers and other workers have been on a rollercoaster ride during the past few days as officials work on separate tracks to implement public employee reforms.

Last month, one of four joint committees that studied property tax fixes recommended 41 changes to pensions and benefits for public employees and elected and appointed officials, including raising the retirement age from 55 to 62, adjusting the formula used to calculate pensions and the creation of a new 401(k)-style pension plan.

The retirement age was left out of resulting legislation, but Corzine went a step further Thursday and asked that other provisions impacting unionized state workers be removed and left to collective bargaining. Contracts with state workers expire in July; negotiations have been ongoing since October.

Senate President Richard J. Codey, D-Essex, and Assembly Speaker Joseph Roberts, D-Camden, conceded to Corzine's request but suggested it hurt property tax reform efforts, in comments published in The Star-Ledger of Newark this weekend.

That sparked a letter from Corzine to Codey and Roberts on Sunday telling them to move forward with the legislation as they saw fit and that he would review it when it hit his desk.

Corzine met separately Monday with Codey and Roberts as both houses of the Legislature held voting sessions.

Leaving the governor's office, Roberts told reporters the reforms targeting unionized workers would be left to negotiations while the Legislature would act on pension and benefit changes to elected and appointed officials.

The state police estimated 12,000 people attended Monday's rally, a figure short of the 25,000 organizers were expecting. But the event drew enough educators to prompt school closures in seven districts statewide, according to a spokesperson for the NJEA.

Senate Minority Leader Leonard Lance, R-Hunterdon/Warren, said every public employee in the system should be assured their pensions are safe and secure.

"Moving forward, that doesn't mean that new hires can't go to a 401(k) plan," Lance added.

Lance noted groups such as the NJEA supported a 1997 measure allowing the state to bond $2.75 billion to meet its future pension obligations, a proposal Lance opposed.


Martin C. Bricketto is Trenton correspondent for The Express-Times. He can be reached at 609-292-5154.
© 2006 The Express-Times. Used by NJ.com with permission.

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