Democrats said they planned to introduce bill next year, but stepped up timetable following a Star-Ledger article Tuesday
N.J. Senate President Stephen Sweeney (D-Gloucester), pictured in this file photo, plans to co-sponsor legislation before the end of the year that would make public employees undergo far more scrutiny before receiving an accidental disability pension.TRENTON — Senate Democrats said Tuesday they plan to introduce a bill before the end of the year that would make public employees undergo far more scrutiny before receiving an accidental disability pension.
Democrats said they had planned to introduce the measure next year, but stepped up their timetable after an article appeared Tuesday in The Star-Ledger focusing on how looser eligibility requirements have led to a record increase in the awarding of pensions.
"There are certainly appropriate times when someone deserves an accidental disability pension, but it shouldn’t be abused," said State Sen. Jeff Van Drew (D-Atlantic), who plans to co-sponsor the legislation with Senate President Stephen Sweeney (D-Burlington). "It harms taxpayers and those who depend on pensions."
Gov. Chris Christie has also said he would like to stiffen the requirements, though he has not laid out specific changes.
The proposed bill would create a joint management-labor board to look at the criteria used to grant accidental disability pensions and recommend more stringent requirements. The board would be required to report to the Legislature within six months, at which time lawmakers could veto the recommendations or let them stand.
A second bill would require recipients to undergo annual medical examinations to confirm that they were unable to return to work.
Through August of this year, New Jersey has awarded a record 537 accidental disability pensions, according to the state, compared with 402 in 2007, the year before the state Supreme Court eased the criteria.
Last year, the state awarded $91.5 million to police and firefighters for accidental disability pensions, a 35 percent increase from 2007, when it dispersed $68 million.
A public employee who qualifies for an accidental disability pension receives two-thirds of his final salary, with no state or federal taxes deducted, and life insurance coverage without having to pay a premium until age 55.
Under a normal disability — and not the result of an accident — an employee receives 40 percent of a salary, and federal taxes are deducted.
The sharp increase came after the high court in 2007 and 2008 expanded the types of incidents that qualify for accidental pensions to include mental illness and injuries sustained from slips and falls.
John Sierchio, who is chairman of the pension board and has been one of law’s most vocal critics, said he hopes lawmakers rely on the experience of the state’s pension boards when setting up the committee.
"They need people who live this everyday," he said. "If not, then it’s meaningless."
Sierchio said requiring annual medical exams will cost taxpayers millions of dollars a year but do little to solve the problem. Rather, he said the state needs to narrow eligibility requirements and penalize recipients working at other jobs.
"We need to eliminate the incentives for abuse and make sure it goes to people who need them," he said, "and that’s not happening now."
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