Synopsis: “An act concerning public employee pension and health care benefits, and amending and supplementing various parts of the statutory law and repealing P.L.1999, c.96 and P.L.1985, c.414. Makes various changes to pension and healthcare benefits for public employees”
Senate Bill No. 2937
Primary sponsor: Senate President Stephen Sweeney (D-Gloucester)
What it means: The 120-page bill makes sweeping changes to public employees’ contributions to their pension and health benefit plans, and to the rules that dictate those benefits. Pensions and benefits have been at the center of debate between Gov. Chris Christie and the legislature since Christie took office, and the apparent agreement on this bill — at least for now — has consumed Trenton for much of the last week and likely for the next.
It’s all in the details: The new bill, introduced yesterday, would require public employees pay up to an additional 2.5 percent of their salaries toward their pensions, and up to 30 percent of their healthcare premiums. But how the law meets those thresholds represents the key differences between what Christie has sought and what Sweeney now proposes, with the Democratic leader phasing in some of the increases and also scaling the healthcare contribution, depending on salary. Low-paid public workers will barely make any contribution at all.
Riding off into the sunset clause: Sweeney struck a deal with Assembly Speaker Sheila Oliver (D-Essex) in introducing the bill to also include Oliver’s proposal that the health benefits changes would have a “sunset clause” and revert to being a subject of collective bargaining in 2014. Christie has not yet commented on the proposed sunset, but has appeared reluctant to back any reforms that have a limited shelf life.
What’s next: The Senate budget committee is set to hold a hearing on the bill tomorrow, with the Assembly budget committee slated to hold its own hearing on the companion bill on Monday.
The reaction: Needless to say, public employees unions aren’t taking too well to the ideas, and have big protests planned tomorrow for the Statehouse and maybe legislators’ homes. The New Jersey Education Association (NJEA) is also holding a press conference today to point out what it calls the false assumptions and savings in the proposals.
Will it pass? That of course, is the bottom line. It’s as close as ever to passage, to be sure, but it faces lots of questions both in substance and politics. Sweeney has said he will push it through, even if it means defying some of his Democratic caucus. Oliver has been less willing, and has indicated she may not post it for final vote without consent of her members.
In the end, it will require what was once unfathomable: a sizable number of Democrats going against organized labor during an election year. But these are remarkable times, with similar measures passing in other states with Democratic support.