Time to End Pension “Double Dipping” in New Jersey

It is no secret that New Jersey’s pension system, just like the pension systems of so many states throughout the nation, is in trouble. For years Governors, Democrat and Republican alike, have skipped pension payments simply because the budget could not afford to make these astronomical contributions when the actual government needed to be funded. You know you have a problem when the fact that this year we will be making a legally minimum payment is something lauded by the media and politicians alike.

Yes, it is good that we are making the bare minimum payment, but that is almost like patting yourself on the back for remembering to breathe. While it is great that under Governor Christie we are finally moving in the right direction, it does nothing to solve the underlying problems of the system.

This week, New Jersey Watchdog released a report that should bring back some interest to the pension issue, and maybe even enrage enough people to hold some legislator feet to the fire. The group did a study and found that over 1,200 people in New Jersey are collecting annual pensions over $100,000 per year. Here are some fun facts that just might make your stomach turn:

• 56 members of the list are currently in their 40s
• Some of those 56 members could actually become “pension millionaires” without double dipping
• 479 members of the $100,000 list are a part of “special retirement” where they can retire after 25 years regardless of age
• Some members are collecting a pension after being fired for cause from their previous position, and are now working in state government again!
• The highest pension in the state of New Jersey is $195,000 per year

Not enough? How about an anecdote? According to Watchdog, New Brunswick Police Director Anthony Caputo retired as Police Director at age 47 and began collecting a $115,000 annual pension and $376,000 in unused sick time. Then one year later he was rehired by the department . . . as Police Director . . .again. For his second try at his old job, Caputo reportedly collects $120,000 a year salary and still collects his pension, a classic double dip.

This is just one example of the kind of thing that should not be happening here in New Jersey or anywhere. If there were not so many Trenton politicians currently double dipping — like  Democrat Senators Fred Madden and Loretta Weinberg, or even Republican Senator Sam Thompson — I would have confidence in our legislative branch to tackle this issue on their own. Unfortunately self interest often creeps into the decisions made by our representatives when working for the public interest.

Republican legislators should seize on this study and call for reform now. The solutions to this problem are both obvious and simple:

1. A strict cap on state pensions for any and all employees within the system going forward.
2. A minimum age requirement or a longer service requirement for “special retirement” employees.
3. An outright ban on the simultaneous collection of a pension and a taxpayer funded salary up to a certain percentage of the poverty level. Or, if we are really feeling revolutionary, a complete ban on double dipping at all, regardless of the size of the new salary. Double dippers should have to forfeit their pension payouts for the years that they continue to work in their second state job after “retirement.”
4. No pensions for employees fired for illegal or unethical activity.

Pensioners will scream far and wide that they are being victimized and that they were promised a payout. Of course no one screams out for the true victims of this disgusting practice, the taxpayers who have to fund it all. The time has come for reform, and those four terms above would be a great start.

Share on Facebook

Tweet

Follow us