Wowkanech Statement on Costly Consequences of Ending Defined Benefit Pensions

A joint report released Tuesday by New Jersey Policy Perspective and Pennsylvania-based Keystone Research Center showed that switching new state employees to 401(k)-style pensions, a move Gov. Christie is considering, could cost taxpayers $42 billion and would not reduce the state’s unfunded liability. CLICK HERE to view the full report.

New Jersey State AFL-CIO President Charles Wowkanech released the following statement in response to the report:

“This independent report shows that New Jersey ranks dead last among the 50 states when it comes to making its annual required pension contribution,” said New Jersey State AFL-CIO President Charles Wowkanech. “It’s way past time for New Jersey to stop skirting the law and start making its required contribution to the state pension system every year. If the state made quarterly payments into the pension system – instead of waiting until the last day of the fiscal year to pay the entire amount due – our pension investments would earn millions of dollars in additional interest that would help us return to a sound funding level sooner.”

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