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NEWS RELEASE
Governor Jon S. Corzine
December 7, 2006
FOR MORE INFORMATION:
Anthony Coley
Brendan Gilfillan – 609-777-2600
GOVERNOR’S LETTER TO SENATE PRESIDENT CODEY AND ASSEMBLY SPEAKER ROBERTS ON PENSION BENEFIT REFORMS
December 7, 2006
The Honorable Richard J. Codey
Senate President
449 Mount Pleasant Avenue
West Orange, New Jersey 07052
The Honorable Joseph J. Roberts, Jr.
Assembly Speaker
Brooklawn Shopping Plaza
Route 130 & Browning Road
Brooklawn, New Jersey 08030
Dear Senate President Codey and Speaker Roberts:
Let me thank you both and the Special Legislative Committees on Pension and Benefits Reform for the initiative shown in the efforts to implement pension benefit reforms. For reasons described below, I respectfully request that certain provisions included in the current bills as S-40 and A-2 be revised and/or removed. I make this request fully appreciating the Legislature’s authority to address these issues.
With the alterations requested, the Legislature will continue to address significant reforms of abuses to the pension benefit system for those outside the duly recognized collective bargaining units. The initiative shown by the Legislature in tackling these significant issues is to be applauded.
These changes are being requested because we are currently engaged in comprehensive collective bargaining with our public employees. Our intent is to seek structural and cost-saving reforms in the context of these collective bargaining negotiations. The effort to address these issues in the context of collective negotiations and discussions with public sector unions might well be significantly compromised if the noted changes were to be implemented legislatively at this time.
Because I need the flexibility to pursue good faith negotiations, I am respectfully requesting that the following provisions be removed and/or revised, as noted, from S40 and A2:
- The provisions in the bill that establish a defined contribution program for public employees, including part-time employees who are part of recognized bargaining units, should be stricken. The reform should be limited to elected officials and full-time appointed officials. The language with regard to public employees, including part-time employees, should be removed because it has a direct impact upon negotiations.
- The proposal as drafted requiring the designation of one job for one pension. That provision should be limited to elected and appointed officials because as drafted it could apply to public employees who work in a shared service context, such as those employees who work across school district lines to offer specialized services.
- The proposals to eliminate the ordinary and accidental disability programs and the replacement with a disability insurance program are serious proposals worthy of additional study and consideration. This initiative would have a significant impact upon negotiation efforts and for these reasons it is requested that they be removed from the current legislation.
- There are a number of provisions that address criminal statutes and the issue of misconduct as it applies to pensions and to treatment of misconduct cases by the courts. The provisions should be directed to elected officials and appointed officials as a reform measure in the current bill. Implementing such changes for all public employees requires further review and study, and will undermine these collective negotiations.
- The provision to eliminate the Sick Leave Injury (SLI) program is one that is a subject of negotiations and that is being pursued in the overall context of negotiations on leave issues. Therefore, it is requested that it be removed from the current bill.
- The provisions requiring averaging of pensions over the highest five years versus years as currently enacted and three years versus one year are being discussed in the context of negotiations. Such provisions should be limited to elected or appointed officials in the current bill, so as to provide the flexibility needed in bargaining.
- The provisions that mandate changes at the local level for leave issues, including those concerning sick leave, vacation leave carryover, and terminal leave payments are ones that are currently a subject for negotiations at the local level. As a reform measure, it is requested that the current bill limit such provisions to those who are appointed and to certain defined high level managerial personnel.
- The proposal to eliminate the non-forfeitable rights language in the bill is one that is under consideration in my office and it is requested that it be removed from the current legislation.
- The provisions in the current bill that mandate the uniform implementation of any changes negotiated at State bargaining to those employed at the local level do not address pensions. Rather, they concern health benefits, and, if implemented, would make it more difficult to negotiate. Therefore, I request that they be removed at this time.
- The provisions in the current bills that eliminate uniform requirements in health plans at the local level also do not address pension reforms. Again, such changes should not be in the current reform bill and removal would assist in negotiations.
- The provision concerning the application of service credit to the calculation of time for retirement medical benefits is again a provision that concerns health benefits. Thus, it is requested that it be removed from the current reform bill.
I commend your efforts to move these issues forward and believe that the bill, as revised, will serve the goals of reform and cost savings while providing us with the flexibility to seek significant reforms in the context of discussions and collective negotiations with labor. Thank you.
Sincerely,
JON S. CORZINE
Governor
State of New Jersey
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|
NEWS RELEASE
Governor Jon S. Corzine
December 7, 2006
FOR MORE INFORMATION:
Anthony Coley
Brendan Gilfillan – 609-777-2600
GOVERNOR’S LETTER TO SENATE PRESIDENT CODEY AND ASSEMBLY SPEAKER ROBERTS ON PENSION BENEFIT REFORMS
December 7, 2006
The Honorable Richard J. Codey
Senate President
449 Mount Pleasant Avenue
West Orange, New Jersey 07052
The Honorable Joseph J. Roberts, Jr.
Assembly Speaker
Brooklawn Shopping Plaza
Route 130 & Browning Road
Brooklawn, New Jersey 08030
Dear Senate President Codey and Speaker Roberts:
Let me thank you both and the Special Legislative Committees on Pension and Benefits Reform for the initiative shown in the efforts to implement pension benefit reforms. For reasons described below, I respectfully request that certain provisions included in the current bills as S-40 and A-2 be revised and/or removed. I make this request fully appreciating the Legislature’s authority to address these issues.
With the alterations requested, the Legislature will continue to address significant reforms of abuses to the pension benefit system for those outside the duly recognized collective bargaining units. The initiative shown by the Legislature in tackling these significant issues is to be applauded.
These changes are being requested because we are currently engaged in comprehensive collective bargaining with our public employees. Our intent is to seek structural and cost-saving reforms in the context of these collective bargaining negotiations. The effort to address these issues in the context of collective negotiations and discussions with public sector unions might well be significantly compromised if the noted changes were to be implemented legislatively at this time.
Because I need the flexibility to pursue good faith negotiations, I am respectfully requesting that the following provisions be removed and/or revised, as noted, from S40 and A2:
- The provisions in the bill that establish a defined contribution program for public employees, including part-time employees who are part of recognized bargaining units, should be stricken. The reform should be limited to elected officials and full-time appointed officials. The language with regard to public employees, including part-time employees, should be removed because it has a direct impact upon negotiations.
- The proposal as drafted requiring the designation of one job for one pension. That provision should be limited to elected and appointed officials because as drafted it could apply to public employees who work in a shared service context, such as those employees who work across school district lines to offer specialized services.
- The proposals to eliminate the ordinary and accidental disability programs and the replacement with a disability insurance program are serious proposals worthy of additional study and consideration. This initiative would have a significant impact upon negotiation efforts and for these reasons it is requested that they be removed from the current legislation.
- There are a number of provisions that address criminal statutes and the issue of misconduct as it applies to pensions and to treatment of misconduct cases by the courts. The provisions should be directed to elected officials and appointed officials as a reform measure in the current bill. Implementing such changes for all public employees requires further review and study, and will undermine these collective negotiations.
- The provision to eliminate the Sick Leave Injury (SLI) program is one that is a subject of negotiations and that is being pursued in the overall context of negotiations on leave issues. Therefore, it is requested that it be removed from the current bill.
- The provisions requiring averaging of pensions over the highest five years versus years as currently enacted and three years versus one year are being discussed in the context of negotiations. Such provisions should be limited to elected or appointed officials in the current bill, so as to provide the flexibility needed in bargaining.
- The provisions that mandate changes at the local level for leave issues, including those concerning sick leave, vacation leave carryover, and terminal leave payments are ones that are currently a subject for negotiations at the local level. As a reform measure, it is requested that the current bill limit such provisions to those who are appointed and to certain defined high level managerial personnel.
- The proposal to eliminate the non-forfeitable rights language in the bill is one that is under consideration in my office and it is requested that it be removed from the current legislation.
- The provisions in the current bill that mandate the uniform implementation of any changes negotiated at State bargaining to those employed at the local level do not address pensions. Rather, they concern health benefits, and, if implemented, would make it more difficult to negotiate. Therefore, I request that they be removed at this time.
- The provisions in the current bills that eliminate uniform requirements in health plans at the local level also do not address pension reforms. Again, such changes should not be in the current reform bill and removal would assist in negotiations.
- The provision concerning the application of service credit to the calculation of time for retirement medical benefits is again a provision that concerns health benefits. Thus, it is requested that it be removed from the current reform bill.
I commend your efforts to move these issues forward and believe that the bill, as revised, will serve the goals of reform and cost savings while providing us with the flexibility to seek significant reforms in the context of discussions and collective negotiations with labor. Thank you.
Sincerely,
JON S. CORZINE
Governor
State of New Jersey
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Photos and audio and video clips from Governor Corzine's public events are available in the Governor's Newsroom section on the State of New Jersey web page, http://www.nj.gov/governor/news/
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