Sweeping changes to public employee benefits expected to be enacted Watch video
Senate President Stephen Sweeney, left, and Gov. Chris ChristieTRENTON — Despite slim Democratic support, state Senate President Stephen Sweeney is prepared to move forward with a plan to overhaul public employee pensions and health benefits before the end of next month, The Star-Ledger has learned.
Sweeney (D-Gloucester) has lined up a small group of Democratic senators who said they would be willing to join with Republicans to help ensure there are enough votes to enact sweeping changes to public employee benefits, four sources familiar with the plan said Tuesday.
The move signals that ongoing negotiations between Sweeney and Gov. Chris Christie over the shape of the changes are progressing. The sources, who requested anonymity because they are not authorized to discuss the negotiations, said lawmakers have not been told of specific details, but Sweeney had assured Democrats the plan would require workers to contribute more to health benefits and would take their salaries into account.
Sweeney spokesman Chris Donnelly declined Tuesday to comment on what steps Sweeney has taken or will take to enact the changes, but expressed confidence a bill would pass the Senate.
“Reform is coming and the Senate president will have more than enough votes to get it done,” Donnelly said.
Christie spokesman Kevin Roberts declined comment.
In recent weeks, Sweeney has told a number of Democratic lawmakers he plans to package the health and pension proposals into one bill and is willing to move the legislation without the majority support of his own party, the sources said. Because Democrats hold 24 of the 40 seats in the upper house, such a move would require votes from Republicans. Senate Republican spokesman Adam Bauer Tuesday said he can’t comment because members have not seen a bill, but said, “We would be happy to talk to Sen. Sweeney if he is seeking our support.”
The measure would also require approval in the Assembly.
“I have no comment on any purported Senate agreement but am increasingly frustrated at the governor’s failure to do his job and collectively bargain benefit changes,” Assembly Speaker Sheila Oliver (D-Essex) said last night.
The momentum is likely to anger public employee unions and even some Democrats, who argue that employee medical benefits should be decided at the bargaining table, not through legislation.
Hetty Rosenstein, regional director for the state’s largest public employee union, called a move to vote on changes to the medical benefits “disgusting.”
“For Democrats to support a bill that eliminates collective bargaining around health care ... that’s hugely problematic for Democrats and wrong,” Rosenstein said. “We expect the Democratic Party to stand up for collective bargaining.”
Sweeney and Christie have found common ground on changes to public employee medical benefits but less on the issue of pensions.
Sweeney introduced a bill that would increase employee medical benefit contributions over seven years and set a sliding scale of 12 to 30 percent of premiums, based on salary.
Christie wants to phase increases over three years and have all employees pay 30 percent of their premiums. He also wants to increase the eligibility requirements for postemployment health care.
Both said pension reform is necessary to restore fiscal health to a pension system that was underfunded by $54 billion as of the latest actuarial account.
Christie wants to increase the retirement age to 65 for many employees, require all public employees to contribute 8.5 percent of their salaries into the pension system, and eliminate cost-of-living increases for all current and future retirees. Sweeney has also proposed a series of pension revisions that include creating a board that would have management over the system’s investments and determine employee contribution rates based upon an annual actuarial analysis.
Ginger Gibson and Matt Friedman contributed to this report.