About $220 million are expected to be realized from increased contributions to police and fireman's pension fund
State Treasurer Andrew Sidamon-Eristoff looks at a chart during a press conference at the Statehouse in this January 2011 photo. Today, Sidamon-Eristoff said local governments across the state will save $267 million due to savings realized from the pension overhaul passed this summer.TRENTON — Local governments across New Jersey will save $267 million in pension costs now absorbed by public employees in the form of higher contributions, according to figures provided by the state’s Treasury Department.
The savings are a result of the controversial pension overhaul bill that passed in June and shifted a greater share of the costs onto public workers. Supporters said the move was necessary to help save the cash-strapped pension system for future retirees and to help ease the burden on local governments.
“Because we took action, New Jersey taxpayers are now seeing that real results will ease strained local budgets and bring costs under control at the local level,” Gov. Chris Christie said in a written statement.
Each year, the state calculates how much cities, counties and school districts must pay into the state’s various pension funds. The calculation takes into account the amount local public employees pay into the fund.
The largest savings, about $220 million, come from increased contributions to the police and fireman’s pension fund.
“These initial savings are just a first installment of benefits that taxpayers will realize under the Governor’s landmark pension and benefit reform law,” said Treasurer Andrew Sidamon-Eristoff. “New Jersey communities, from the biggest to the smallest, will see savings as result of these reforms.”
Related coverage:
• Projected 8.9 percent increase in N.J. pension bills underscores need for reform, treasurer says