Senator Turner Responds to Planned Benefits Increase, Demands Explanation and Consideration
Senator Shirley K. Turner (D-15) issued the following statement today in response to the plan that would result in double-digit rate increases in health benefits for public sector employees and retirees.
“This abruptly announced rate increase proposal is very troubling and not only raises a number of questions, it also underscores the need for greater transparency surrounding rate increases and even greater accountability for a non-profit company that has historically paid huge salaries and bonuses to its executives,” said Senator Turner.
“We are experiencing the highest inflation rate in 40 years, and a double-digit increase in health benefits costs, when everyone is paying more for everything from rent to gasoline to groceries, will create a severe financial hardship on public employees and retirees. It will also hurt our retirees who are living on fixed incomes and experiencing financial stress since they have gone without cost-of-living increases for the past 11 years. Everything is going up but the paycheck.”
“Our taxpayers deserve an explanation. Health insurance companies have made record profits, as fewer people make hospital and doctor visits,” added Senator Turner. “The rate increase proposal begs the question, how much of our taxpayer money is going toward enriching those at the top while the rest barely survive.”
For context, John Reitmeyer of NJ Spotlight News:
“Volatile financial markets continue to upset the bottom line for New Jersey’s public-worker pension fund, all while Gov. Phil Murphy and lawmakers have been working to bolster state contributions.
“The latest preliminary figures for the more than $90 billion pension fund indicate investment returns were running in negative territory through the end of May, echoing struggles that many private investors have been facing this year as markets have tumbled.
“As a result of the turbulence, the pension fund appears to be in danger of having its first full fiscal year with net negative returns in more than five years.
“Final figures are not available yet for the fiscal year that ended June 30, but the preliminary estimates, which are subject to future revisions, show negative returns of nearly 3% through the first 11 months of the 2022 fiscal year. Despite that poor outlook, however, this will have no immediate impact on the benefits now being paid for current retirees…
“Not surprisingly, the volatility has taken a toll on the pension-fund returns both for the calendar year and for the recently ended 2022 fiscal year, according to the preliminary estimates.
“For the calendar year, the pension-fund has been generating more than 6% negative returns, according to the early estimates, which do not include the latest performance of several asset classes that report to the state with a lag. Over the first 11 months of the 2022 fiscal year, the returns were running at negative 2.86%.
“Among the pension fund’s poor performers have been U.S. equities, which yielded nearly 6% negative returns through the first 11 months of the 2022 fiscal year. Bonds have also been disappointing, with U.S. Treasuries generating near 8% negative returns over the same time frame, according to the preliminaries.”
I believe that over the last eleven or so years, the public employees have had several raises. People who etired many years ago have not seen one penny in raises. When will it be their turn to catch up. The cost of living has risen so highly that many are going in the hole.Joe
The facts remaining are that Christy Todd Whitman stole money from the pension without Legislative approval. No one realizing how much employees pay into the pension. Then Florio gave every local, county and state entity a pass on paying the annual pension bill that was strictly enforced. The worst was Gov Christy getting the Dems to agree to cut off the Cola. I can tell you it is a big hardship. We have retirees in their seventies in need of work. I will be looking soon.
Senator Turner turned her back on all NJ retirees. Her bill S260 would have restored COLA for retirees, after 12 years of being lied to, as COLA comes from the employers not the pension fund. The pension fund is the conduit to get COLA to the retirees. It’ known as the Pension Adjustment Act, a law since 1958! After all the media attention, an over estimation by OLS of $2 billion dollars, Unions fighting against reinstating COLA to protect active members contractual negotiations, Senator Turner decided her bill (after 10 years) was no good and publicly came out against it! Who does this? Shame on you Senator Turner. You have 50% of the Senate and 20% of the Assembly on board. It’s a real shame you backed away to save your own political career!
It is an outrageous punch in the gut to public retirees in NJ now having 30% less spending power with their pensions since 2011 while NJ had a windfall of covid bail out money and road high on the economic upswing through 2016-2020. Tax reductions are pending and the retirees are unfairly suffering what amounts to a tax on their retirements to support new spending and tax cuts. We need the increases now!
When I retired in 2009 my police pay was $112,000.00 after 26 years of employment. Police officer now, with the same tenure are making 150K because of the standard cost of living adjustments. You legislatures have stolen our retirement and are complicit to the injury you have caused people who put their lives on the line to serve the public good. You people are evil and guilty of this gross incompetence. Reinstate COLA now,
The only time Politicians what Policemen Firemen Troopers Corrections Officers around is for A picture Governor Christy was the worst He just stole are earned Colas and pension benefits We were promised when we put Uniforms and Badges on and swore Oath to serve the citizens of NJ