NJ governor delays pension reforms

In the wake of its highly-publicized wrangling over taxes, New Jersey will hold off on an effort to reform the state's public pension system.

In a recent radio interview Corzine said he plans to address some changes starting with negotiations for a new government worker contract this fall. The contracts for most public employee unions expire at the end of June.

"We have to have pension reform and health care reform, and it ought to be done in the standard way that you deal with your employees, through a contract negotiation," Corzine said Tuesday on New Jersey 101.5 FM. "We're going to be calling for that early, and that's going to, I hope, save both money and make sure that public employees will be secure that they'll actually get what's promised."

Some changes, however, can be accomplished through new laws, and Corzine recommended several in his March budget speech, saying pension abuses damage government credibility.

He called for raising the minimum salary for workers to qualify for a government pension, giving newly elected officials a 401(k)-like retirement plan, instead of the more generous defined-benefit government pension, and taking state contractors out of the pension system.