Pension Reforms Means Good News For Galloway, Mayor Says

Pension reforms signed into law on June 28 by Gov. Chris Christie earlier this week puts Galloway Township in a “better cash position,” Mayor Keith Hartman said on Friday, Oct. 7.

Earlier this week, Christie said the reforms will save taxpayers and local governments in the state $267 million in Fiscal Year 2012. That announcement included $224 million in local taxpayer savings in the Police and Fireman’s Retirement Systems (PFRS) and $43 million in the Public Employee Retirement System (PERS).

In Galloway Township, that will mean $29,000 in PERS savings and $476,000 in PRFS savings.

“Theoretically, it means more in the budget at the end of the year,” Hartman said. “The reforms have been successful and our bills will be lowered.

“It’s thanks to the state’s efforts. The governor led the charge on it and he pushed it through.”

“This $267 million in savings is the direct result of our bipartisan efforts to take on the biggest challenges facing our state and deliver sustainable, long-term property tax relief to New Jersey’s families and job creators,” Christie said in a release issued earlier this week. “Because we took action, New Jersey taxpayers are now seeing that real results will ease strained local budgets and bring costs under control at the local level. These savings are critical to getting our economy moving again and creating jobs, while also protecting the core local government services New Jerseyans expect and deserve.” 

The law provides more than $120 billion in savings on state and local government pension payments over the next three decades. This includes a projected $79 billion in state contribution savings and a projected $43 billion in local government contribution savings.

“These initial savings are just a first installment of benefits that taxpayers will realize under the Governor’s landmark pension and benefit reform law,” Treasurer Andrew Sidamon-Eristoff said. “New Jersey communities, from the biggest to the smallest, will see savings as result of these reforms.”   

A savings breakdown of Fiscal Year 2012 PFRS pension cost savings for each local government in New Jersey – municipalities, counties and other local government units – can be accessed at the Department of Treasury’s website.

The local government savings breakdown for PERS, previously released on July 14, 2011, is also available.