NJ pension change proposal delayed

If some cash-strapped cities aren’t allowed to put off their pension payments they may be forced to raise property taxes by as much as 30%.

A measure that would allow local governments in New Jersey to delay pension payments might not be enacted in the final days of the current legislative session.

Listen:
[audio: 100105PGPENSION.mp3]

The pension deferral bill has been pulled from consideration in Senate and Assembly committees.

Assembly sponsor Joan Quigley says if some cash-strapped cities aren’t allowed to put off their pension payments they may be forced to raise property taxes by as much as 30%.

Quigley: The economy hasn’t improved all that much so the taxes coming into the municipalities aren’t high enough to meet all the obligations. So if we stretch out those obligations a little bit longer and the economy improves more people will be paying more taxes and the pension payments will be more affordable.

Senate Majority Leader Steve Sweeney says the measure did not have enough votes to win committee approval. He opposes it because the state pension system is already underfunded.