New Jersey Assembly Bill A3933

New Jersey 2022-2023 Regular Session

• Introduced: 5/12/22
• Refer: 5/12/22

Caption

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.