TRENTON – The Christie administration reported Friday that fiscal year 2014 pension costs will be 25 percent lower than they would have been without the 2011 pension and benefits reform.
The administration stated that the FY14 pension costs will represent a savings to taxpayers of $540 million.
“The tough decisions we made in 2011 to get our pension and benefit costs under control are paying dividends every year for New Jersey’s overburdened property taxpayers,” Gov. Chris Christie said in a release.
According to the administration, there were cost increases of 17.7 percent, 9.6 percent, and 25.8 percent respectively in fiscal years 2009, 2010, and 2011.
In the two fiscal years since, pension costs have fallen by 6.1 percent and 1.5 percent, the state reported.
Local governments throughout New Jersey make annual contributions to the Public Employees Retirement System (PERS) and the Police and Firemen’s Retirement System (PFRS) to fund pension benefits for their employees and these contributions are one of the largest components of their budgets, the administration said.
The total amount that local governments and school districts will have to contribute to PERS and PFRS in Fiscal Year 2014 will be $1.57 billion, compared to the $2.11 billion they would have had to pay without the 2011 reforms, the state reported.
In Fiscal Year 2014, there will be an 11.8 percent increase in actuarially recommended contributions to PERS and a .28 percent increase in recommended contributions to PFRS, or an aggregate increase of 5.68 percent.