Chris Christie signs bill requiring unions pay more

[The Northerner]

In one of his biggest legislative victories since taking office, New Jersey Gov. Chris Christie signed a bill into law on Tuesday that requires state workers to pay more for their pensions and health insurance.

“It is an important moment for the state of New Jersey, for its citizens, its taxpayers, and New Jersey has once again become a model for America,” Christie said at the bill signing, the Star-Ledger reported.

A half-million teachers, police and other public workers will have to pay the increased contributions, which Christie has said will help keep the state’s taxes down and ensure that the pension and health programs can continue to exist for many years to come.

Starting on Wednesday, public employees will have to contribute an additional 1 percent of their pay to their pensions. Once their current contracts expire — or as soon as January if their contracts expire by then — state workers will also have to pay more for their health insurance.

Read more: http://www.politico.com/news/stories/0611/57955.html#ixzz1Qc9JEJ7u

[ClarkUSA]

1. The Democrats caved in NJ, despite controlling the legislature.

[monmouth]

2. Iron Workers and Operating Engineers many of which live in NJ will

not be happy. The good thing is that I'm thinking ole Chris is a one-termer.

[Angry Dragon]

3. Does that include the governor and the legislature??

[no_hypocrisy]

4. So bogus. The legislation has no guarantee that the State won't take the pension dues

out of the fund (again), use that money to close the annual state budget gap, and never replace those funds. Public sector workers are taxed twice.

[w0nderer]

5. possibly a stupid question

I did try googling this a bit, but couldn't really find a good conclusive answer.

In Europe when Unions negotiate they will often trade a pay raise for that year/contract term for a 'perk' like extra pension or extra paid vacation days or similar.

I.e. 'we are willing to not get a pay raise this year if you increase pension contribution by 2% above adjustment (COLA or Depriciation) the next 2 years)

Is that the case in the US as well
and if it IS haven't all these people taken a lower wage assuming that the state would compensate them in other ways

[B-Stupid]

6. Wow, a whole 1% more.....

how will they ever survive? I pay 15% of my gross into my 401k and then max out a roth...