Saturday, March 12, 2011

Pennacchio Comes Out Swinging On Pension Reform

New Jersey State Senator Joe Pennacchio, a member of the Senate Budget and Appropriations Committee and sponsor of S-2705 which would adopt Governor Chris Christie’s proposed pension reforms, issued the following statement in response to the pension and health benefits reform website established by the Senate President today: 
"Senate President Sweeney's commitment to pension reform is a positive step. It is important that the reform that is eventually adopted provide a long-term, permanent solution to the deficit in the pension system, which currently stands at $54 billion. Addressing the pension deficit and bringing benefits down to reality is the only way to save the system for public workers and treat the taxpayers of New Jersey fairly." 
"I am, however, deeply concerned that the website released today does not provide a bottom-line analysis. While Senator Sweeney states that his plan will save $110 billion, I have not seen any independent actuarial analysis that supports his conclusions. My proposal will, as confirmed by actuaries, fix the pension deficit. We have not been provided with a similar analysis of Senator Sweeney's proposal, and therefore cannot be sure that his plan will be effective in addressing the shortfall in the pension fund." 
"Reform that does not reduce the deficit is no reform at all. The bill that I have sponsored has been analyzed by independent pension actuaries who assert that my bill will solve the problem over time. I look forward to a similar analysis of the legislation being promoted by Senator Sweeney."

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