New Jersey’s second largest city overhauls its pension system

Gov. Chris Christie has signed into law a bill that overhauls the pension system in New Jersey’s second-largest city.

The law reduces cost of living adjustments in Jersey City’s pension plan. It also raises the retirement age for new employees from 60 to 65 and requires them to have 25 years of service instead of 20. The measure also increases penalties for early retirement.

Senate President Steve Sweeney amended the measure to apply savings from the lower cost of living adjustments to bolster the pension system instead of shifting the money to the general budget.

Jersey City Mayor Steven Fulop had claimed Democrats who work closely with Christie had delayed the legislation because Fulop would not endorse Christie’s re-election. Sweeney disputed that.