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Chris Christie on Social Security
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State pensions cut by $120B; but $90B still to go
We defied the conventional wisdom and reduced the cost [of state pensions] to taxpayers by over $120 billion over the next three decades. Today, the health of the pension system is stronger than it was 5 years ago. In fact, gains have totaled over
$35 billion--which is way above projections--thanks to our sound management and smart investment strategy.But the pension fund's problem is a long-term one. Right now the $90 billion unfunded liability for pensions and health benefits is three times
the size of the annual state budget. Think of this way--in order to close the current shortfall in just the pension system alone every family in New Jersey would have to write a check for $12,000.
That is the nature of long-term entitlements which grow
faster than the economy, and in that regard our problem here in New Jersey is not that different from Washington's entitlement problem. Last summer I appointed a pension and health benefits task force--to think outside the box, and they are hard at work.
Source: State of the State address to 2015 New Jersey Legislature
, Jan 13, 2015
Pension reform: raise retirement age, suspend COLAs
Our pension system, which was on a path to insolvency, is now on much more sound footing. We tackled the problem head on--modestly raising the retirement age, reducing incentives for early retirement, suspending COLAs until the plan is 80% funded, and
yes, asking for something slightly closer to market in terms of employee contributions.In total, the pension and health benefits reform package that you passed will save taxpayers over $120 billion over the next 30 years.
Just as importantly, it will help make sure the pension is actually there when our public employees and school teachers retire. Other states have noticed: this reform is becoming a model for America.
When we combine this needed discipline on spending
and taxes, with responsibility in addressing our long-term liabilities, with pro-growth actions on the regulatory side, we have made New Jersey a better place to do business.
Source: N.J. 2013 State of the State Address
, Jan 8, 2013
We're in trouble due to overspending on entitlement programs
Q: Why do you think America got itself into such a terrible mess economically? What do you think was the problem?
A: Greed. And because no one wanted to tell anybody the truth. The truth was you can't continue to spend the kind of money our spending on all these entitlement programs.
I think we need more people in public life who are willing to say no, we can't afford certain things, no we can't do certain things, we've got to wind up being honest with people.
I think we got ourselves in this mess because some people in the financial industry became incredibly short-sighted and greedy and we had government officials who refused to say no.
Source: Interview on CNN "Piers Morgan Tonight"
, Jun 15, 2011
Raise the retirement age, and limit COLA, for state workers
We must tackle this year is our antiquated and unsustainable pension and benefit system. - Without reform, pension and health care benefit costs will increase by more than 40% over the next four years.
- Without reform, the unfunded liability wil
grow, from $54 billion today to a staggering $183 billion within 30 years.
- Without reform, the required annual pension contribution by the state will grow to over $13 billion annually over that same time period.
- Without reform, the beneficiaries
of the system face a high risk of catastrophe which would place ALL of their benefits at risk.
We must modestly raise the retirement age in an era of longer life expectancy. We must curb the effect of COLAs in a time of low or no inflation. And we
must ensure a modest but acceptable contribution from employees toward their own retirement system. Without reform, the problem we face is simple: Benefits are too rich, and contributions are too small, and the system is on a path to bankruptcy.
Source: 2011 N.J. State of the State Address
, Jan 11, 2011
Page last updated: Jan 19, 2015
