CHICAGO May 17 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
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)