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Wednesday, October 25, 2006
Trenton, NJ
LEAGUE URGES JOINT COMMITTEE REVIEW PFRS
Today, the State Joint Committee on Public Employee Benefits Reform held its 9th fact finding meeting toward the goal of reducing the escalating costs of pension and health benefits. The League of Municipalities is concerned about the Joint Committee’s apparent lack of attention to the Police and Fire Retirement System (PFRS). The high price tag associated with PFRS retirement benefits creates funding problems that inevitably drive up the cost of local government.
The focus of hearings have been State and Local PERS and TPAF. Rightfully, the Joint Committee is examining changes in the area of raising the retirement age, ending the practice of pension tacking and boosting, increasing pension enrollment threshold, etc. All of these contributing factors are reflective of the cause of the pension dilemma. However, no serious attention has been directed toward PFRS, the most expensive local government system when measured by benefits granted to employees.
Police and Fire workforce represents less than 14% of the total local government workforce, but they demand in excess of 65% of the pension costs. The primary reason pension costs have become such a mounting problem for municipalities and local property taxpayers is because of the rich benefits provided to 14 % of the workforce. Benefits provided mostly due to State mandated enhancements approved over the objection of the League.
League Executive Director, Bill Dressel stated, “We strongly urge this Joint Committee on Public Employee Benefits Reform give credence to the recommendations contained in League’s COPE report on this very important issue. We hope consideration of PFRS will be one of their primary focuses for pension reform and true property tax relief for the general public”.
Contact: Bill Dressel, Executive Director
(609) 695-3481 x22; (609) 915-9072 |
