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Deal to change N.J. public workers' pensions, benefits is struck by Christie, Sweeney

Agreement would require employees to pay more for benefits Watch video

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Gov. Chris Christie, right, and Senate president Steve Sweeney, left, have struck a deal on changes to public employees' health benefits and pensions.

TRENTON — Public workers would pay more for their pension and health benefits under a deal struck between Gov. Chris Christie and Senate President Stephen Sweeney, two sources with knowledge of the plan said today.

Under the deal, most public workers would immediately pay an additional 1 percent of their salaries for their pensions, while police and firefighters would pay an additional 1.5 percent. The state would pledge to increase its pension contributions to legally required levels.

The sources declined to speak openly in advance of an announcement, which could come today.

Assembly Speaker Sheila Oliver (D-Essex) is trying to sell her caucus on the plan, according to two sources with knowledge of the proceedings but not authorized to speak.

Outside the room where Assembly Democrats gathered, Assemblyman Al Coutinho (D-Essex) acknowledged that a heated debate was taking place.

“There are people with strong emotions,” he said.

Workers would pay up to 30 percent of their health care premiums after a four-year period. But unlike Gov. Chris Christie’s original proposal, the payments would be tiered based on income, so employees with lower salaries pay less.

CWA New Jersey Director Hetty Rosenstein declined to discuss the specifics of the proposal, but said she’s opposed to legislation that “undermines collective bargaining.”

“This proposal attacks collective bargaining. It’s absolutely unaffordable. And it does not one thing — there’s no indication that it does anything to address the high cost of health care.”

Several public sector labor union leaders are standing near the Assembly Democrats’ room, hoping the lower chamber will provide a bulwark against the health benefits part of the package.

Public unions want health benefits to be decided through collective bargaining, not legislation.

“We feel there is an avenue in the Assembly where we can protect our collective bargaining rights,” said Dominick Marino, president of the president of the Professional Firefighters Association of New Jersey

The governor's office, as well as spokesmen for Sweeney and Oliver, declined to comment.

Assemblywoman Joan Quigley said there is vocal opposition to health benefits legislation inside her caucus.

“The Assembly is really just learning for the first time of the deal. There are millions of questions, and right now I don’t think there’s a consensus either way,” she said.

By Matt Friedman and Jarrett Renshaw/The Star-Ledger

Related coverage:

Assembly Speaker Sheila Oliver stalls legislation dealing with changes in pensions, benefits

State workers demonstrate solidarity against Christie's proposed benefit, pension cuts to public employees

N.J. Gov. Christie, public workers union fight over changes in employee health benefits

Christie, unions spar over history of skipping collective bargaining to change health benefits

League of Municipalities president calls on Legislature for pension, benefit reform

Labor attorneys urge Legislature to abandon plan to increase N.J. employees' contributions to health benefits

N.J. Senate President Sweeney says costs of benefits are breaking local government budgets


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