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