May 8, 2017
League and Association of Counties Applaud Governor’s
Conditional Veto of PRFS Legislation
Earlier today, Governor Chris Christie conditionally vetoed legislation that would transfer control of the Police and Fire Retirement System (PFRS) from the State Department of Treasury to an independent board. The Governor’s conditional veto provides important and necessary protection for property taxpayers, including:
- A balanced board (7-7) between labor and management. The bill as passed by the Legislature was a labor controlled (7-5) board;
- Subjecting PFRS to the reforms of P.L. 2011, c. 78;
- Sick pay reform.
- Provides transparency
Michael J. Darcy, Executive Director of the New Jersey League of Municipalities stated,
“The League of Municipalities applauds the Governor’s action in conditionally vetoing S3040 and for advancing recommendations that protect our taxpayers. PFRS is a defined benefit plan, in which the employee’s contribution is statutory capped, so if there is a shortfall in a return from investments the employers (in this case municipal and county taxpayers) must make up the difference from their general funds. It’s not equitable for our property taxpayers to carry all the risk with little control and that’s why putting our taxpayers on equal footing is vital. We urge the Legislature to accept and advance the Governor’s recommendations. ”
John Donnadio, Esq, Executive Director of the New Jersey Association of Counties added, “With local governments contributing 70% of the funds to the PFRS system, the Governor’s recommendations provide safeguards while preserving the important bi-partisan reforms advanced in 2010 and 2011. The Governor’s recommendations not only improve the existing proposal, but he has also advanced important sick pay reform to offer further taxpayer protections. We likewise urge the Legislature to advance the Governor’s recommendations.”
Contact: Mike Cerra, Assistant Executive Director, NJLM
email@example.com, 609-695-3481 x120 or 609-532-2494.