Joining states like Wisconsin, Michigan and Ohio that are requiring public employees to pay more for health benefits, the New Jersey Assembly on June 23 approved a bill that will require 750,000 government employees and retirees to contribute substantially more for their health insurance and pensions. The trend is designed to prevent additional lay-offs of state workers, who then confront sticker-shock in the individual market, though it may also be drying up funds those workers use to buy voluntary benefits.
The New Jersey law sought by Republican Gov. Chris Christie will also suspend cost-of-living increases to pension checks, raise retirement ages and curtail union contract bargaining rights. The state Senate is expected to send the legislation to Christie for signing today.
