The State Legislature took action on November 21 to send a bill to the Governor requiring the State to make quarterly pension payments. CWA has supported this common sense pension reform to ensure the State pays its obligated contribution every year, instead of making the pension payment on the last day of the fiscal year. By doing so, we lose out on investment income which saves taxpayers and the State millions, and actually reduces the actuarially required pension payment.

The legislation would require the Governor to issue pension payments by Sept. 30, Dec. 31, March 31 and June 30 of each year. Governor Christie had previously vetoed this legislation, but the new bill requires the pension fund to reimburse the state treasury for any losses incurred if the state has to borrow money to make a payment.

Unfortunately, although the legislation would set forth this payment requirement, we still need the Legislature and Governor to appropriate the full contribution in the budget each year. Without a Constitutional Amendment that would require pension payments, the state legislation is good, but we have seen this Governor and others skip payments regardless of state legislation.

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