New Jersey Gov. Christie mulls 401(k) for state workers: report

CHICAGO Sat May 17, 2014 2:41pm EDT

New Jersey Governor Chris Christie speaks during the Republican Jewish Coalition Spring Leadership Meeting at the Venetian Resort in Las Vegas, Nevada March 29, 2014. REUTERS/Las Vegas Sun/Steve Marcus

New Jersey Governor Chris Christie speaks during the Republican Jewish Coalition Spring Leadership Meeting at the Venetian Resort in Las Vegas, Nevada March 29, 2014.

Credit: Reuters/Las Vegas Sun/Steve Marcus

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CHICAGO (Reuters) - New Jersey's Republican Governor Christie plans to propose switching some public workers in the state to a 401(k) defined contribution pension plan, or a hybrid variation, from traditional pensions, according to the Wall Street Journal.

New Jersey officials did not immediately respond to requests for comment on Saturday.

This would be Christie's second attempt at such a move and officials from his administration will roll out a formal plan later this year, the paper reported citing a person familiar with discussions on the issue.

The state's existing defined benefit pension plan invests workers' retirement funds and pays retirees benefits for life. In a 401(k) workers make their own investments and employers can match their employees' contributions. Public-sector unions have opposed abandoning the current system.

New Jersey currently has an unfunded pension obligation of more than $50 billion.

(Reporting By Nick Carey; Editing by Bernard Orr)

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Comments (6)
Looter wrote:
See he is showing his true colors… Vote him out New Jersey VOTE HIM OUT

May 17, 2014 3:00pm EDT  --  Report as abuse
ExDemocrat wrote:
What Gov. Christie is contemplating is very sensible, especially for a state that is over-taxed, and arguably has excessive public sector financial liabilities, like New Jersey. If public sector unions supported the types of changes being considered, one would immediately suspect that something untenable or untoward was about to happen.

May 17, 2014 6:17pm EDT  --  Report as abuse
auger wrote:
He’s testing the water with one toe – under the shadow of the bridge

May 17, 2014 8:33pm EDT  --  Report as abuse
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