Pension Reforms to Save Lawrence $500,000+ in 2012

Editor's Note: The following is a news release issued by Lawrence Township on Friday afternoon (Oct. 7).

Lawrence Township Manager and Chief Financial Officer Richard Krawczun announced that the township's fiscal year 2012 payments to the state's public employee and state and police and firefighters retirement systems would be reduced by $523,991 from what would have been required in 2012 if Gov. Christie and the state legislature had not reformed the system to lower its cost to property taxpayers. The governor signed these reforms into law on June 28, 2011.

In 2011, the township's payments to the Public Employee Retirement State of New Jersey (PERS) and the Police and Firemen's Retirement System of New Jersey (PFRS) totaled $2,733,368. Before the reforms to the system were enacted, Lawrence Township had been advised that its 2012 obligation to these funds was expected to reach $2,864,236. Due to the enacted reforms, the 2012 payments have been reduced to a combined total of $2,340,245. This reduction of nearly $525,000 represents approximately two cents on the municipal tax rate.

"This reduction in the township's payment to the state pension systems will directly benefit the taxpayers of Lawrence Township,” Mayor Greg Puliti said. "I commend Gov. Christie and the bipartisan leadership of the state legislature for enacting these reforms. They have reduced the burden on taxpayers and will help ensure the solvency of the funds for the future.”

Councilman Bob Bostock concurred: "At a time when our local government's budget is already under considerable pressure, the news of this significant reduction in our pension payments is most welcome. In these difficult economic times, Lawrence Township taxpayers deserve a break. Thanks to the governor and the legislature, they are getting one.”