Appropriates $1 billion to Division of Pensions and Benefits for State-administered retirement systems and pension funds.
Impact
The passage of A3933 will provide a crucial injection of funds into the state’s pension systems, which are crucial for ensuring the financial security of current and future retirees. This bill seeks to rectify years of underfunding and could potentially stabilize the state’s retirement framework. By ensuring that these funds are appropriated immediately upon enactment, it aims to prevent further erosion of the pensions' financial viability, which could have long-term implications for public sector employment and state financial health.
Summary
Assembly Bill A3933, introduced by Assemblywoman Verlina Reynolds-Jackson, proposes a significant appropriation of $1 billion to the Division of Pensions and Benefits for state-administered retirement systems and pension funds. This funding is intended to address the state's unfunded accrued liabilities, a long-standing issue that has resulted from years of inadequate financial contributions to these systems. With the current record increase in state revenues, the bill emphasizes the necessity and timeliness of making these payments to strengthen the financial sustainability of the state's retirement systems.
Contention
While there is a general consensus on the need for financial stability within state retirement systems, some discussions have emerged regarding the implications of such a large appropriation. Opponents may question whether the state can sustain such financial commitments in future budgets, especially if revenue levels fluctuate. Moreover, there may be debates about the prioritization of pension funding versus other pressing state needs, including education, healthcare, and infrastructure. Such contentions highlight the complexity of balancing fiscal responsibility with the imperative to provide adequate retirement security for state employees.
Requires Treasurer and Divisions of Pensions and Benefits and Investment Directors to report on status of State-administered pension plans to Legislature by May 15 and November 15 each year.
Proposes constitutional amendment to require payments by State to State-administered retirement systems and establish in Constitution right of public employees to pension benefit; provides for enforcement of funding obligations and benefit rights.
Proposes constitutional amendment to require payments by State to State-administered retirement systems and establish in Constitution right of public employees to pension benefit; provides for enforcement of funding obligations and benefit rights.
"New Jersey Infrastructure Capital Asset Reassignment Enterprise Fund Act"; creates trust fund for conveyance of certain assets for benefit of State-administered retirement systems; appropriates $20 million.
"New Jersey Infrastructure Capital Asset Reassignment Enterprise Fund Act"; creates trust fund for conveyance of certain assets for benefit of State-administered retirement systems; appropriates $20 million.
To provide appropriations from the General Fund for the expenses of the Executive, Legislative and Judicial Departments of the Commonwealth, the public debt and the public schools for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide appropriations from special funds and accounts to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide for the appropriation of Federal funds to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; and to provide for the additional appropriation of Federal and State funds to the Executive and Legislative Departments for the fiscal year July 1, 2022, to June 30, 2023, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2022.