March 4, 2011
Re: 2012 PERS and PFRS Billing Amounts
To assist you in long term planning, the State Division of Pensions and Benefits has released PERS and PFRS billing amounts for FY 2012 budgets. These amounts are payable in April 2012 and the obligations must be appropriated in local unit CY and FY 2012 budgets.
This release of data demonstrates that municipal government and school districts will pay an increase of 8.9% for pension benefits in 2012. This follows a 22% increase in 2011.
This again illustrates that pension reform, along with health benefits reform, must be addressed immediately. Taxpayers have been promised reform and relief for too long without those promises being realized.
Municipalities are now drafting their first budget with a 2% cap. Although these costs are exempt from that cap, they will result in significant tax increases or severe reductions in services. The Governor and Senate President have both advanced proposals and the Speaker has promised action in the Assembly. The reforms have bipartisan support. We can wait no longer. The time to act is now
Additional information and individual agency amounts are online at http://www.state.nj.us/treasury/pensions/2012-employer-billing.shtml.
Very truly yours,
William G. Dressel, Jr.