Headed for BankruptcyIn his remarks to lawmakers in the Assembly chambers yesterday, Christie said fixing the state’s pension and health benefit systems in order to save them is one of his top three priorities of the new year. "Benefits are too rich, and contributions are too small, and the system is on a path to bankruptcy," the governor said during his speech.Christie’s proposals for reforming the system includes raising the retirement age of public employees, curbing cost-of-living adjustments in times of low inflation and requiring contributions from employees toward their own retirement system.
So, we need to start to require employees to contribute to the pensions. Which they already do.[...]The governor has proposed changes that include rolling back a 9 percent pension increase the legislature granted a decade ago when the economy was vibrant. He's also proposed raising the retirement age to 65, from 62, and making all workers contribute 8.5 percent of their salaries to their pensions, a greater percentage than most do now. [emphasis mine]
We will never, ever, have a serious discussion about pensions until the media takes the time to actually understand the issues involved.