Jefferson Saves $70K With Health, Pension Reforms

Jefferson Township taxpayers will save just under $70,000 in Fiscal Year 2012 due to the recently negotiated by the state's top lawmakers, and signed by Gov. Chris Christie.

The township will save $30,371 and the board of education will save $38,194 in pension costs, according to a statement from Christie's office.

"Is this amount significant? No. But is it a step in the right direction? Definitely yes," said Jefferson Township Council President Richard Yocum. "This will be ongoing for weeks, months, years to come, and it will have a positive impact on taxpayers."

Taxpayers shouldn't expect much immediate relief, Jefferson Township business administrator James Leach said.

"The governor's reforms are going to be phased in over the next four years [for health care payments]," Leach said. "So the initial number is negligible, and really won't have any impact on the tax bill for each homeowner. But over time, it will make a difference."

Gov. Chris Christie signed the law late last month after lawmakers  from both major political parties brokered the deal that upset unions throughout the state.

The reform bill requires state and local government workers who belong to the Public Employees Retirement System, as well as teachers and other education workers under their own retirement system, to pay an additional 1 percent of their salaries toward their pensions as of July 1—bringing them up to a 6.5 percent contribution. Another 1 percent would be phased in over seven years, for a total of 7.5 percent.

State and local police, as well as firefighters, must contribute an additional 1.5 percent of their salaries to their own pension funds. Local police and firefighters will be contributing 10 percent; state police will be contributing 9 percent.

The bill will have a more significant impact on the cost of health benefits, as it requires all public employees and certain public retirees to contribute toward the cost of health care benefits coverage based upon a percentage of the cost of coverage. Public employees could see current health costs at least doubled, or tripled in some cases, with increases phasing in over four years.

Richard Geib, Jefferson's PBA representative, said Jefferson workers will take a substantial hit.

“Passage of this bill means that the average police officer in Jefferson will have to pay an additional $6,000 to $8,000 toward their benefits and pension,” Geib said last month. “I don’t know where that money is going to come from for most of these people. The bottom line is that we will be paying for the state’s mismanagement of the pension system, and that’s just not fair.

He said the police union is “very upset” about the law.

And Jefferson's New Jersey Education Association representative, Tony Szwartz, said his union is no happier with the changes.

"I just don't understand how the governor can take these steps on something that was contractually agreed upon with each union's collective bargaining unit," Szwartz said.

But H. Ronald Smith, president of the Jefferson Township Board of Education, said the additional monies being required of public workers (such as teachers and other school district employees) were justified.

“Times are tough,” Smith said. “In this economy, public workers should support their benefits. We all have to tighten our belts, and school budgets are no different.

“I think that for health care benefits, they should have made it the same percentage for all employees across the board, rather than lower-paid employees paying less,” he continued.

Dr. Kathaleen Fuchs, superintendent of Jefferson Township schools, declined comment.