N.J. Nears Deal to Cut Pensions, Benefits

Lisa Fleisher:

New Jersey Gov. Chris Christie and Senate legislative leaders have reached a deal to cut pensions and benefits for current public employees, according to a person familiar with the matter.

The deal would require workers to pay more of their salaries into the pension system, give up annual cost-of-living increases and pay a percentage of their health care premiums in a tiered system based on their salary, this person said. New employees would have to work longer to get full benefits. Current retirees would not be affected by the deal, nor will people who have at least 25 years in the system.

Top Democratic lawmakers appear to support the proposal. Senate President Stephen Sweeney, who is also a private-sector labor leader, believes he has the votes in his caucus to make it work, according to a person familiar with the matter. It's unclear whether Assembly Speaker Sheila Oliver is on board with the deal -- one legislative source said she was -- and if she would be able to muster enough votes in the Assembly, which has been more of an obstacle to Christie's agenda.

Posted by Jim Zellmer at June 9, 2011 1:20 AM
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