Bramnick Endorses Move to 401(k) System for Public Pensions

With Gov. Chris Christie preparing to call for sweeping changes to the state's public employee pension system, the number two Republican in the state Assembly has endorsed the plan of his fellow Republican.

Assemblyman Jon Bramnick (R-Westfield) said the state needs to change the public employee pension system, calling for elimination of pensions for part time employees and for the switch to a 401(k) system in pensions. He noted that the current public employee pension system has been causing fiscal problems for the state and the current budget gap will not allow for the continuation of the system.

"It does not reflect reality in the 21st century," he said. "I don't know any private sector jobs with pensions anymore, let alone part time pensions."

Bramnick, the Assembly Republican conference leader and a member of the budget committee who also represents Madison, said a move away from the current pension system is at the top of the  changes he would like to see in state government. He noted with the $1.2 billion gap in the current state budget and the projected $10 billion in the state budget starting on July 1, cuts are not enough and systemwide changes are needed for state government.

Christie is expected to unveil a wide ranging pension reform plan today. The plan calls for increased contributions from public employees, including teachers, for health care costs, along with health care contributions from retirees. The governor plans on calling for the elimination of pensions for part time employees and a change in the way pensions are calculated.

The pensions for part time employees have been a point of contention statewide for a number of years. Former Gov. Jon Corzine signed legislation raising the minimum salary to qualify for a state pension, eliminating scores of local government elected officials and members of boards regulating professions. Contract employees of local governments no longer qualify for pensions under the Corzine plan, but existing attorneys hired with pensions are grandfathered into the system.