CCSNJ Supports Changes to the Public Employee Pension and Health Care Systems
Friday, November 07, 2008

M E M O R A N D U M

TO: Members of the Pension and Health Benefits Review Commission

FROM: Kathleen A. Davis, Executive Vice President & COO

RE: A-3165 (Johnson)

S-2090 (Scutari)

A-3301/S-2099 (Weinberg/Adler/Johnson)

S-2087 / A-3076 (Haines/Addiego/Rudder)

A-3255 (Albano/Milam)

DATE: November 7, 2008

The Chamber of Commerce Southern New Jersey supports A-3165 (Johnson), S-2090 (Scutari) A-3301/S-2099 (Weinberg/Adler/Johnson), S-2087/A-3076 (Haines/Addiego/Rudder) and A-3255 (Albano/Milam) which legislate changes to the public employee pension and health care systems. As you know, our Chamber has been a strong and consistent voice in the need for state government to bring the spiraling employee related costs under control and to do so in a way that does not impact the benefits of existing state employees.

The Chamber supports A-3165 (Johnson), S-2090 (Scutari) and A-3301/S-2099 (Weinberg/Adler/Johnson), all which requires certain appointed public officials to work 35 hours or more per week to be eligible for PERS and SHBP. Currently, appointees are eligible for full membership as long as their compensation is more than $1,500 annually. Raising the bar for membership into these systems will save taxpayer dollars and bring balance to a currently skewed system. A-3301/S-2099 (Weinberg/Adler/Johnson) also requires the termination of PERS and SHBP participation of certain appointed officials whose term of appointment expires. The Chamber believes this measure makes sense and would set an example that government is serious about controlling spending.

The Chamber also supports S-2087 / A-3076 (Haines/Addiego/Rudder), which would require a person that is eligible for health care benefits from more than one public entity to chose coverage from only one. Similarly, A-3255 (Albano/Milam) would require a person to designate one position for PERS membership if two PERS-covered positions are held. Currently, there are no limits to the number of PERS covered positions from which a person can collect a pension, and all of these pensions are deposited into single retirement account for the member.

As recommended by the Chamber’s Board Council on Responsible Government Spending and prior testimony before the Senate and Assembly Budget Committees, getting the cost of state employee benefits under control is an important strategy to controlling state government expenses. The cost of employee benefits has driven the escalation in the state budget every year, accounting for nearly half of the so-called “mandatory” increases.

These bills are certainly a step in the right direction. The Chamber remains committed to working with our policymakers to make these needed reforms to public employee benefits to save taxpayer dollars.