Democratic gubernatorial candidate Steve Sweeney on Wednesday came out in favor of cost-of-living adjustments for public employees, more than a decade after gutting the adjustments as New Jersey reeled from the Great Recession.
Sweeney’s plan to reinstate COLAs, according to a release, is to use public assets like land, water utilities, and the Turnpike as “in-kind contributions” that would improve the state’s pension funding ratio. Sweeney said he hopes the plan will allow state officials to reimplement COLAs without an increase in taxes on New Jerseyans.
“New Jersey’s public employees and public school teachers are among the most hardworking, dedicated, and passionate individuals in the state,” Sweeney, the former Senate President said in the release. “Our retired workers, as well as future employees, deserve financial security in their retirement. It is only right to reinstate COLAs to reflect that commitment.”
COLAs are shaping up to be a hot-button issue in next year’s gubernatorial election. Retirees received no COLA this year despite relatively high inflation. Former Gov. Chris Christie signed bipartisan legislation in 2011 that suspended COLAs, a controversial move that helped ease the load on the pension system.
Sweeney said the state still isn’t contributing as much as it should for a healthy pension system, but that his “asset optimization” plan will make it possible to restore COLAs.
“Asset optimization is a proven strategy,” Sweeney said in the release. “Moving the New Jersey Lottery into the pension system bolstered its funding ratio and diversified its revenue stream, benefiting public employees, retirees and taxpayers.”
Jersey City Mayor Steven Fulop, another Democratic candidate for governor, has pledged support for a phased-in restoration of COLAs.