Police, firefighters would control own pension plan under N.J. bill

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TRENTON — Police and firefighters would manage their own pension plan, taking control from the state, under a bill the Legislature passed Thursday. It now heads to Gov. Christie’s desk.

The Police and Firemen’s Retirement System, like the six other plans that make up New Jersey’s $72 billion pension fund, is currently managed by a division of the state Treasury Department.

The legislation would transfer control of the police and firefighters’ fund to its own board of trustees, which would be modified to include seven members representing workers and five members representing local and state government employers. There are about 41,000 active participants in the fund.

The majority of police and firefighter unions in the state support the measure, arguing that the state has relied too heavily on hedge funds and other so-called alternative investments. The police and firefighters’ board would need a two-thirds vote in order to change pensioners’ benefits.

Opponents, such as the State League of Municipalities, have expressed concern that if the fund failed to meet investment expectations, taxpayers would be stuck covering the shortfall.

The legislation passed the state Assembly on Thursday, 61-4 with 10 abstentions, following a 37-0 vote in the Senate last week.

New Jersey has the worst-funded pension system in the country, according to Bloomberg, but the police and firefighters’ plan is relatively healthy.

Published: March 24, 2017 — 12:22 PM EDT

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