Polling Pension Preferences
Posted March 5, 2010

In his address last month on New Jersey's financial "state of emergency," Governor Chris Christie took aim at the state's pension system. He noted the system "is desperately in need of reform," called pensions and benefits "the major driver of our spending increases at all levels of government – state, county, municipal and school board," and cited the case of a 49-year-old state retiree who will collect $3.3 million in pension payments and almost $500,000 in health care benefits although he only paid $124,000 into his plan.

Indeed, the new governor made it clear that pension reform was unquestionably needed. Of course, those currently in New Jersey's pension system are not quite so eager.

According to a Fairleigh Dickinson University PublicMind™ poll released this week, 46% of voters in the public pension system "give the governor thumbs down" in job performance. This is compared with just 21% overall. On the approval side, 52% of overall voters think the governor is handling his job well, while only 35% of voters in the pension system agree.

Additionally, the poll findings reveal:

… while 39% of all voters rate the governor's performance so far as "good" or "excellent," including one in four Democrats (26%), one in five active and retired public employees (21%) agree. Likewise, while 13% of all voters say the governor's performance is poor, including one in five Democrats (20%), a third of public employees (33%) rate the governor as poor.

According to Poll Director and Political Scientist Peter Woolley, the responses are not surprising. "Public employees are on the defensive. But there is a wider range of opinion among public servants than their interest group leaders let on."

Public- and private-sector voters alike support pension reform, but they differ on how they believe that reform should look, with fewer public employees wanting the reform to impact themselves negatively.

The poll notes:

For example, 78% of voters agree that all public employees, including teachers, should contribute some of their salary toward their health care benefits, while public employees split with 51% agreeing and 45% disagreeing. Meanwhile, 69% of all voters say the state should cap payouts at retirement for unused vacation time, and 64% of public employees agree. Similarly, 69% of voters say payouts for unused sick leave at retirement should be capped, and 56% of public employees agree.

When it comes to fixing the budget, most voters believe the solution lies in spending cuts, but 21% actually would support tax increases. (Thankfully, the governor does not share this latter view.)

We've known for quite some time that the surgery needed to heal New Jersey's serious financial injury would not be painless, and that recovery would take time.

While we understand that retirement pensions are a source of security to countless workers and their families, we also recognize that New Jersey's outrageously structured pension system has been draining our state's resources for far too long – and in reality increasing the long-term burden on today's families and future generations.

Indeed, pension recovery might prove painful. But it's absolutely necessary if long term health is the goal and if we want to make New Jersey an affordable place for families to live, work, and raise their children.

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