Sweeney Statement on Governor’s Conditional Veto of Pension Bill Allowing Police & Fire Unions to Manage Their Own Pension Investments

TRENTON – Senate President Steve Sweeney issued the following statement on the governor’s conditional veto of legislation that would authorize the police and firefighter unions to manage their own pension funds. The bill, S-3040, would have transferred management of the Police and Firemen’s Retirement System from the Division of Pensions and Benefits in the Department of the Treasury to the Board of Trustees of the Police and Firemen’s Retirement System:

“The governor’s rejection of this legislation is extremely disappointing. The police and fire unions have responsibly funded their pensions over the years, even as the state withheld payments and as local governments took pension holidays.

“This bill was about giving these unions that have demonstrated success in managing their pensions the ability to make the best investment decisions for their members. This kind of system has worked effectively with private-sector unions and with public sector unions in other states where the investment returns under union management have outperformed public boards.

“I’ve fought aggressively to make sure that our state’s pension system is managed in a way that protects this promise to all of our workers, and I’ve been willing to engage in the difficult discussions about what it needed to bring our systems to solvency. But leadership also means recognizing when there are better ways of doing things.”