(TRENTON) – Legislation sponsored by Assembly Democrats Benjie E. Wimberly (D-Bergen/Passaic) and Eliana Pintor Marin (D-Essex) requiring the state to make quarterly pension contributions was released Tuesday by the Assembly Budget Committee.
The bill (A-4605) would require the state to make its required pension contributions on a quarterly basis on August 1, November 1, February 1 and May 1 of each fiscal year rather than making a single annual contribution. This payment schedule would prevent the state from raiding the pension fund to balance the state budget at the very end of a fiscal year in the event of a revenue shortfall.
“The governor cannot continue to treat New Jersey’s public employees like playthings when it comes to the budget,” said Wimberly. “With just days left in this fiscal year, his only plan involves cutting the state’s pension contribution in an attempt to cover up his administration’s mismanagement. Our state’s public workers deserve better than the broken promises of this administration.”
“As a state, we have an obligation to stand up for the hard-working members of New Jersey’s middle class. We also have an obligation to act in a fiscally responsible manner,” said Pintor Marin. “Considering the volume of the state’s unfunded liabilities, it is clear that resorting to pension contribution cuts in order to close budget gaps will only create more trouble on both fronts down the road. This legislation would make sure paying into the pension is a priority.”
The bill would take effect immediately.