“Communities all across our state are seeing the reality of the historic, bipartisan reforms we achieved this summer. Realizing $267 million in total first year savings across the state means significant savings that are benefitting our overtaxed property taxpayers immediately. Paramus taxpayers will see over $933,000 in 2012 savings from our pension reforms alone, with additional savings coming as we move forward with implementing health benefits reforms,” said Governor Christie. “We are doing what we promised, which is to end Trenton’s property tax gimmicks and deliver real, sustainable relief that New Jersey taxpayers can count on year after year.”
The Governor’s bipartisan reforms are delivering for Bergen County taxpayers, with local governments in Bergen County experiencing savings of over $26.6 million for 2012 as a direct result of pension reform. While these savings come in the form of lowered pension contribution costs in local government budgets, Governor Christie has strongly urged county, municipal and school board officials to use these savings to provide property tax relief to their residents rather than spend these funds in other areas of their budget.
Governor Christie’s Reforms Provide Paramus Taxpayers with $933,364 in Relief in 2012
Paramus Borough Savings in Police and Fireman’s Retirement Systems (PFRS): $812,700
Paramus Borough Savings in Public Employee Retirement System (PERS): $69,959
Paramus Board of Education Savings in PERS: $50,705
Paramus Total: $933,364
In addition, Governor Christie’s bipartisan health benefits reform law is providing $70 million in estimated savings for state and local governments in 2012 as a result of changes in retiree benefits and employee health care plans. State and local governments will achieve these savings as a result of public employees being able to choose from a much wider array of health care plans under the 2012 benefit structures for state-managed health plans and changes to Medicare Part D that reduce retiree prescription drug benefit costs. The health plan benefit structures were approved in separate actions by the Design Committees for the State Health Benefits Program (SHBP) and the School Employees Health Benefits Program (SEHBP) last week. The two committees were created by the landmark bipartisan health and benefits reforms Governor Chris Christie signed into law on June 28.
Paramus Borough Savings in Police and Fireman’s Retirement Systems (PFRS): $812,700
Paramus Borough Savings in Public Employee Retirement System (PERS): $69,959
Paramus Board of Education Savings in PERS: $50,705
Paramus Total: $933,364
In addition, Governor Christie’s bipartisan health benefits reform law is providing $70 million in estimated savings for state and local governments in 2012 as a result of changes in retiree benefits and employee health care plans. State and local governments will achieve these savings as a result of public employees being able to choose from a much wider array of health care plans under the 2012 benefit structures for state-managed health plans and changes to Medicare Part D that reduce retiree prescription drug benefit costs. The health plan benefit structures were approved in separate actions by the Design Committees for the State Health Benefits Program (SHBP) and the School Employees Health Benefits Program (SEHBP) last week. The two committees were created by the landmark bipartisan health and benefits reforms Governor Chris Christie signed into law on June 28.
Governor Christie has acted on a commitment to delivery property tax relief to New Jersey families by fixing the underlying causes of the state’s property tax crisis. In addition to historic pension and health benefits reform, Governor Christie enacted a 2 percent cap on property tax increases to end the skyrocketing rise in taxes, a 2 percent cap on interest arbitration awards to control costs under the cap, a cap on superintendent salaries, increased education funding and maintained a stable level of municipal aid.
Because of Governor Christie’s commitment to reverse two decades of irresponsible neglect of the pension system, New Jersey’s taxpayers will now realize substantial savings over the next three decades. The Governor’s historic pension and benefits reform law will provide more than $120 billion in savings to state and local governments.
· $79 Billion in State Contribution Savings: Over the next 30 years, the state pension contribution will be $148 billion, a projected savings of nearly $80 billion. Without reform, the state was projected to contribute $227 billion over the same period.
· $43 Billion in Local Government Contribution Savings: Over the next 30 years, local government pension contributions will be $70 billion, a projected savings of nearly $43 billion. Without reform, local governments were projected to contribute $113 billion over the same period.
The $267 million represents local government savings from the projected costs of pension contributions in PFRS and PERS had Governor Christie’s pension reforms not become law. The statewide, year over year savings in pension costs experienced by local governments between Fiscal Year 2011 and Fiscal Year 2012 is approximately $84 million.
A savings breakdown of Fiscal Year 2012 PFRS pension cost savings for each local government in New Jersey – municipalities, counties and other local government units – can be accessed at the Department of Treasury’s website here: http://www.state.nj.us/treasury/pensions/epbam/exhibits/pdf/2012-pfrs-comparison-revised-78.pdf
The local government savings breakdown for PERS, previously released on July 14, 2011, can be accessed here:http://www.state.nj.us/treasury/pensions/epbam/exhibits/pdf/2012-pers-comparison-revised-78.pdf
Because of Governor Christie’s commitment to reverse two decades of irresponsible neglect of the pension system, New Jersey’s taxpayers will now realize substantial savings over the next three decades. The Governor’s historic pension and benefits reform law will provide more than $120 billion in savings to state and local governments.
· $79 Billion in State Contribution Savings: Over the next 30 years, the state pension contribution will be $148 billion, a projected savings of nearly $80 billion. Without reform, the state was projected to contribute $227 billion over the same period.
· $43 Billion in Local Government Contribution Savings: Over the next 30 years, local government pension contributions will be $70 billion, a projected savings of nearly $43 billion. Without reform, local governments were projected to contribute $113 billion over the same period.
The $267 million represents local government savings from the projected costs of pension contributions in PFRS and PERS had Governor Christie’s pension reforms not become law. The statewide, year over year savings in pension costs experienced by local governments between Fiscal Year 2011 and Fiscal Year 2012 is approximately $84 million.
A savings breakdown of Fiscal Year 2012 PFRS pension cost savings for each local government in New Jersey – municipalities, counties and other local government units – can be accessed at the Department of Treasury’s website here: http://www.state.nj.us/treasury/pensions/epbam/exhibits/pdf/2012-pfrs-comparison-revised-78.pdf
The local government savings breakdown for PERS, previously released on July 14, 2011, can be accessed here:http://www.state.nj.us/treasury/pensions/epbam/exhibits/pdf/2012-pers-comparison-revised-78.pdf
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