NJ Police/Fire Mythfighting on Pensions

The New Jersey Firemen’s Mutual Benevolent Association (NJFMBA) and the New Jersey State Policemen’s Benevolent Association (PBA) have a ‘scheme to seize control of the fire and police pension system’ that two smaller unions, the Professional Firefighters Association of New Jersey (PFANJ)  and the New Jersey Fraternal Order of Police (NJFOP), oppose. According to nj1015 legislation is needed:

The draft bill would shift management of the PFRS from state control to a board on which labor appointees would have a majority of the positions – two fire, two police and one retiree, along with four employer representatives. The board would control investment decisions and design of the plan.

Here is the NJFMBA case and here is the PFANJ rebuttal. My thoughts are below.

The New Jersey pension system is the worst funded in the nation (37.5%) and there will be no distinctions between local and state levels when the money runs out.  Unless ‘control’ of the PFRS comes with taxing authority there is nothing the unions can do to maintain the benefit levels promised regardless of how many experts they bring in to tell them otherwise.

6 responses to this post.

  1. Posted by dentss dunnigan on December 12, 2016 at 12:10 pm

    I know the state wanted to merge all pensions into one to put off the eventual …but this could become a real cat fight

    Reply

  2. Posted by George on December 13, 2016 at 9:36 am

    I think the idea is that if they separate police from the other category they will get a separate, police only, bailout, possibly with help from a sympathetic federal government. Fire gets to hitch their caboose to the police, although I wonder if they will get thrown off the bail out bus at some point.

    Reply

  3. Unless ‘control’ of the PFRS comes with taxing authority there is nothing the unions can do to maintain the benefit levels promised regardless of how many experts they bring in to tell them otherwise.
    Well stated. If only the NJFMBA and PBA children could understand this simple fact.

    Reply

  4. Posted by Javagold on December 13, 2016 at 11:56 pm

    Protect and serve …… Their pension

    Reply

  5. Posted by Anonymous on February 8, 2017 at 8:18 pm

    in response to George, the police and fire along with corrections, we are all part of the same pension system so there will be no separating from each other. the state wants the people to believe that its all one pension but its not. The teachers and state workers are part of a separate system. the Police & Fire Retirement System can survive on its own, that’s the reason why they want to govern their own pension. PS THE STATE IS DRAINING THE SYSTEM NOT THE UNIONS

    Reply

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