Pension payments for state retirees can be withheld when income taxes are insufficient to cover them. This approach, taken by New Jersey Gov. Chris Christie (R), stands as the New Jersey Senate on Dec. 18 voted not to override Christie’s veto of a bill that would have required quarterly contributions to the state’s defined benefit plan.
Christie had adopted his approach to pension plan contributions in June, according to NJ.com. The New Jersey legislature wasted no time in responding: S2265 and A3487 both were introduced on June 23; the Senate version became the substitute for the Assembly bill and was approved by both chambers three days later.
Christie vetoed the bill on July 10. He was characteristically blunt in his veto message: “This bill represents an improper and unwarranted intrusion upon the longstanding executive prerogative to determine the appropriate timing of payments in order to properly match the timing of large annual expenditures with the timing of the actual receipt of State revenues. Historically, all pension payments have been made at the end of the fiscal year and my administration has followed that same path after determining that it is the most appropriate time to make those payments. Simply wishing in a law that sufficient funds will be available on specific future dates does not change the fiscal realities of revenue collection during the course of a twelve-month year.”
The Senate override attempt failed in a 25-12 vote.
The state-administered pension systems are the Teachers’ Pension and Annuity Fund, the Judicial Retirement System, the Prison Officers’ Pension Fund, the Public Employees’ Retirement System, the Consolidated Police and Firemen's Pension Fund, the Police and Firemen’s Retirement System, and the State Police Retirement System.
Christie had adopted his approach to pension plan contributions in June, according to NJ.com. The New Jersey legislature wasted no time in responding: S2265 and A3487 both were introduced on June 23; the Senate version became the substitute for the Assembly bill and was approved by both chambers three days later.
Christie vetoed the bill on July 10. He was characteristically blunt in his veto message: “This bill represents an improper and unwarranted intrusion upon the longstanding executive prerogative to determine the appropriate timing of payments in order to properly match the timing of large annual expenditures with the timing of the actual receipt of State revenues. Historically, all pension payments have been made at the end of the fiscal year and my administration has followed that same path after determining that it is the most appropriate time to make those payments. Simply wishing in a law that sufficient funds will be available on specific future dates does not change the fiscal realities of revenue collection during the course of a twelve-month year.”
The Senate override attempt failed in a 25-12 vote.
The state-administered pension systems are the Teachers’ Pension and Annuity Fund, the Judicial Retirement System, the Prison Officers’ Pension Fund, the Public Employees’ Retirement System, the Consolidated Police and Firemen's Pension Fund, the Police and Firemen’s Retirement System, and the State Police Retirement System.
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