By Michael Symons
TRENTON – New Jersey taxpayers could have to put an extra $1 billion a year into public pension systems if new workers are switched to a 401(k)-style plan, opponents of such a change warn in a new report.
New Jersey Policy Perspective and the Pennsylvania-based Keystone Research Center say the cost of such a transition could be $42 billion over 30 years. That’s based on research actuaries did last year for Pennsylvania, which opted against the move, not a direct study of New Jersey’s pension funds.
“This is an option that makes little sense for either taxpayers or for retirees,” said Gordon MacInnes, a former Democratic state senator and president of New Jersey Policy Perspective.
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