NJ Spotlight News
NJEA wants changes to state’s tiered pension benefits
Clip: 1/2/2025 | 4m 38sVideo has Closed Captions
Pending bill would rewrite changes made to bolster pension fund
The state’s largest teachers union is backing a bill sponsored by Sen. Linda Greenstein (D-Middlesex) that would undo major changes that granted varying levels of pension benefits based on when a teacher was hired. The tiers began in 2007, reducing benefits and increasing the retirement age almost yearly until mid-2011.
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NJ Spotlight News is a local public television program presented by THIRTEEN PBS
NJ Spotlight News
NJEA wants changes to state’s tiered pension benefits
Clip: 1/2/2025 | 4m 38sVideo has Closed Captions
The state’s largest teachers union is backing a bill sponsored by Sen. Linda Greenstein (D-Middlesex) that would undo major changes that granted varying levels of pension benefits based on when a teacher was hired. The tiers began in 2007, reducing benefits and increasing the retirement age almost yearly until mid-2011.
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Learn Moreabout PBS online sponsorshipMeanwhile, lawmakers are less likely to come to a quick agreement on a separate pending issue whether to reform the public worker pension system, all in an attempt to lure more young people to help with the state's teacher shortage by getting rid of the changes made by Governor Christie back in 2011.
Senior correspondent Joanna Gagis reports.
We need make up make up for the shortages that we're facing right now.
Right.
So anyone who says, you know, we're fine and let's keep things the way they are.
Well, look at what we've got right now.
What we've got is a teacher shortage in the state that NJEA president Sean Spiller, who's also running for governor in 2025, says can be addressed in part by changing the state's tiered pension system.
The state's largest teachers union is backing a bill that would do just that.
I've heard so many complaints from teachers and others about how unfair the pension system is now.
Senator Linda Greenstein sponsored a bill that would undo a major reform made during the Christie administration that grants varying levels of pension benefits based on when a teacher is hired.
The tiers began in 2007, reducing benefits and increasing retirement age almost yearly until mid 2011.
All educators hired after that date fall under Tier five, giving them the lowest level of benefits and highest retirement age.
By setting up these tiers.
We have these different levels where people start at different times and they're just not getting really the proper pension.
It's become extremely unfair.
Spiller and Greenstein believe it's a key factor in educators not wanting to stay in the profession.
The bill would grant all new hires the same benefits as those hired before 2007.
Adding to the state's pension obligation, which it's only begun to fully fund in recent years.
If you became governor, you're running for governor.
The state had to dip into its reserves significantly to make those pension payments.
Where does the money come from?
In a budget that also needs to include fully funding our schools.
We've seen since this drop, these dollars were removed and we created these these pension tiers.
We've seen the local municipalities have had to make up that difference.
Right.
Local school districts are hiring educators at higher steps.
Local municipalities are offering signing bonuses if you come in.
All of that is paid with local property taxes.
If you cut back on the state level funding, you just increase those property taxes.
All paid in an effort for districts to attract and retain teachers amid the shortage.
But Garden State Initiative, a nonprofit think tank, self-described a center right, put out a report recommending the state not adjust its tiered system, but offer more flexible retirement options instead.
The pension plan the state offers now, it locks individuals into a 20 year work commitment, and workers of today and tomorrow aren't looking for that 20 year commitment anymore.
And the private sector realized that a long time ago.
So in offering different pension options and this is what we put forth, we didn't say take away anything the state offers, but in offering options, you're doing two things at once.
You're helping to recruit new employees and at the same time you're lowering our long term pension liability, which is completely honest, unsustainable in our state.
And they're opposed to increasing pension options for existing educators.
I think teachers should have the benefits that they signed up for whatever contract they signed for, they agreed to.
And I don't think going back and retroactively changing any contracts either in any way is the right way to go here.
I mean, this is a step backwards, right?
We're protecting changes that were made for the benefit of the state.
And teachers agree to them and other state employees agree to these changes.
And we're going back to a system that's actually going to pile on debt.
I don't see it as going backwards.
I think it is of equity right when we look at it.
There's a couple of things going on here.
You know, first and foremost, so many of our support professionals and again, looking to any district you see here, they're even being dumped out of the pension system with the hours that they're working.
And, you know, to have someone work a full career and have nothing right, no pension system is just unacceptable.
If they made agreements for X amount of time, it wasn't because they really agreed, it's because that was what they had to deal with.
If we make this change, I think we'll be moving in a positive direction.
Whether any other lawmakers agree on this being the right direction to turn around, the teacher shortage will be seen when this bill gets posted for a committee vote.
No date set for that yet.
For NJ Spotlight News, I'm Joanna Gagis.
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