Senator Steven Oroho’s legislation to strengthen New Jersey’s public employee pension systems was signed into law by Governor Chris Christie.
The measure, S-2810, requires the State to pay its annual pension contribution on a quarterly basis.
“We worked on a bipartisan basis to enact this legislation that will help shore up our underfunded pension systems without asking more from taxpayers,” said Oroho. “This legislation provides the opportunity to earn an additional $100 to $200 million per year by getting portions of our pension contribution invested in the markets sooner.”
Oroho is a co-prime sponsor of the legislation with Senate President Stephen Sweeney and Senate Minority Leader Tom Kean.
Under the bill, the state would be required to make at least 25 percent of its pension payments by September 30th, 50 percent by December 31st, 75 percent by March 31st, and 100 percent byJune 30th.
Oroho noted that the newly signed law offers increased flexibility over prior versions of the legislation and a proposed constitutional amendment requiring quarterly pension payments.
“From an investment perspective, it makes good financial sense to make the biggest payment we can make as quickly as we can make it,” added Oroho. “We worked to balance our pension system needs with budgetary concerns by providing the Legislature and State Treasurer the flexibility to maximize our investment returns and account for swings in the economy that impact state revenues.”
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