Lawmakers in New Jersey are considering changes to retirement benefits for public employees to address ongoing labor shortages and recruit more personnel. They are also looking to expand benefits for widows and children of state troopers who died following the 9/11 terrorist attacks. However, these proposed changes are expected to increase the state’s long-term financial obligations and add to taxpayer-funded retirement benefits.
The state’s pension system has been underfunded for decades, leading to a $80 billion net liability in 2023. Gov. Phil Murphy’s budget includes increased funding for public-worker pension benefits, with the total contribution expected to reach $7.2 billion in the 2026 fiscal year.
Lawmakers are also considering measures to impact retirement benefit rules for firefighters and police officers, which could increase annual state costs by millions of dollars. These proposals aim to expand benefits for surviving relatives of deceased members and provide service credit opportunities for military and law enforcement personnel.
Overall, balancing the state’s labor force needs with financial obligations remains a key concern for lawmakers as they work to improve the state’s pension system.
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