Pension Reform Yields Significant Savings for Cinnaminson

Cinnaminson will save more than $280,000 next year, thanks to pension reform signed into law two years ago. 

According to figures released by the state Department of the Treasury, the township's pension payments in 2014 for the Public Employees Retirement System (PERS) will be $189,580 and $505,462 for the Police and Firemen's Retirement System (PFRS), a total of $695,042.

Without pension reform, that amount would have been $976,084, a $281,042 (or roughly 28 percent) difference, according to Treasury projections.

For township administrator Frank Locantore, the savings is definitely welcome.

"When you're talking about numbers that low, that's a significant savings for a person crafting a budget within the confines of a 2 percent cap," he said. "It's one less concern—a cost that is not going to rise."

Local governments throughout New Jersey make annual contributions to PERS and PFRS to fund pension benefits for employees and these contributions are one of the largest components of their budgets.

On the other hand, Locantore said, the savings from pension reform is offset by costs beyond the township's control that go up each year, such as insurance and fuel. 

The township is not the only entity that will experience savings. The Cinnaminson School District is projected to save $126,429.96 in 2014 and the fire district will save $106,654.73. 

Altogether, Burlington County governing bodies will save $17.98 million on pension payments in 2014. Statewide, the savings are projected to be $540 million.

"This is a great example as to how bipartisan state-level reform can pay big dividends," said state Treasurer Andrew Sidamon-Eristoff. "Thanks to pension and other reforms under Governor Christie’s leadership, local governments will save approximately $540 million overall, an amount that is equivalent to 37 percent of total budgeted municipal aid in 2014."

Check out the attached PDF to see the complete savings breakdown for every governing body in Burlington County.