HomeMy Public PortalAboutResolution 01:201No. 01-201 Date of Adoption JUNE 21~ 2001
RESOLUTION EXPRESSING SUPPORT FOR ASSEMBLY BILL 3506
SENATE BILL 2450 PROVIDING A STRUCTURAL CHANGE IN THE
PUBLIC EMPLOYEE RETIREMENT SYSTEM BY CHANGING THE
MULTIPLIER RATIO FOR NORMAL SERVICE RETIREMENT AND
PERMITTING EMPLOYEES TO FUND THE ENHANCED BENEFIT
WHEREAS, the State of New Jersey offers public employees a contributory defined
benefit retirement system as permitted by the internal Revenue Code and funded through
contributions made by both employers, employees and investments; and
WHEREAS, the current system was created in 1942 and provided service retirement
membership to receive a benefit based upon 1/70c~ for each year of credible service times
their final average salary; and
WHEREAS, July 1, 1953, the benefit structure was changed to provide for 1/60 for each
year of credible service ti~nes the final average salary; and
WHEREAS, the proposed legislation A3506/S2450 will change the multiplier ratio to
/55 for each year of credible service t~mes the final average salary; and
WHEREAS, the Public Employees Retirement System has a combination of surplus
funds and excess market assets equal to $7,225 billion dollars and employers have
received a "holiday" for the past six years and have not been required to make a
contribution; and
WHEREAS, employees on average have continued to contribute in excess of 250 million
dollars each year helping to create the excess surplus and greater market value which is
reported in the latest evaluations; and
WHEREAS, employees will continue to contribute in excess of 200 million dollars a year
as a method to pumhase the enhanced benefits which are to be provided in accordance
with the proposed legislation.
NOW THEREFORE, BE IT RESOLVED by the Mayor and Council of the Borough of
Carteret, State of New Jersey according to the following:
NO 01-201 PAGE. 2
The proposed legislation is viewed as revenue neutrals and will permit
employees to purchase an enhanced benefit through continued
contributions to the Public Employees Retirement System.
The current multiplier for Public Employees Retirement Systems (1.67) is
below the national average and proposed legislation will bring New Jersey
close to the national average, which is 1.89% of the final average salary.
The legislation is supported because it provides a first step towards
equalizing the Public Employees Retirement System with other systems
administered by the State of New Jersey ali which have recently received
enhancements.
The legislation will provide a much needed relief for those service retired
members who on average receive a pension of $9,550 a year which in light
of today's economic pressures are insufficient.
The proposed legislation will serve as an endorsement for creative and
talented employees to continue their career with State and Local
Government thereby enhancing and providing stability of services.
Adopted this 21st day of June, 2001
and certified as a true copy of the
original on June 22, 2001.
KATHLEEN M. BARNEY, RMC/CMC
Municipal Clerk
COUNCILMAN
FAZEKAS
QUINONES
REIMAN
X _ Indicate Vote
RECORD OF COUNCIL VOTE
AB- Absem NV - Not Voting
XOR - Indic'ales Vole to Overrule Veto
Adopted at a meeting of tile Municipal Council
JUNE 21~ 2001