Spadea: Convert Public Employees to 403B Plans
“How do you fix the pension and benefit crisis in New Jersey?
Billions in debt and unfunded future liabilities are threatening the economic stability of our state. The burden of taxation increases every year and politicians in Trenton have failed miserably to offer any solutions.
In any case, purchasing health care across state lines, allowing for competition that would dramatically reduce costs and therefore lower the amount needed from taxpayers, and separating the unions in order to allow for a change in collective bargaining that could reduce benefit costs similar to the actions taken in Wisconsin should all be on the table.
Did you know that by addressing public unions directly and changing the way benefits were negotiated, Wisconsin saved billions of dollars and went from a $3 billion-plus defect to a nearly-$1 billion surplus? And that teachers’ salaries in certain areas actually went up? The key is to first make sure we treat the different unions separately as the job of Trenton government workers and cops on the street are very different.
The second step is to identify the need for plans that define the contribution from workers instead of defining the benefit. If we make these changes over the next few years, it’s possible that we can save the system and stand up to the promises made to our hardworking public servants.”