Christie’s Pensions Reforms: Significant and Bold

Chris Christie has unveiled his proposal for dealing with New Jersey’s pensions. The changes are bold and will have a significant effect on the size of New Jersey’s pension liability.

He proposes to freeze the COLA, roll back the 9 percent benefit enhancement passed in 2001, increase the size of the contribution made by workers to their pensions and their health care benefits. These measures are some of the most impressive to date in the realm of pension reform in the states. And will go a long way to reducing the size of the outstanding liability.

Other states might take notice.