How Much Will Moorestown Save From Pension Reform?

Moorestown will save more than $500,000 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) are projected to be $658,726 and $818,509, a total of $1.47 million.

Without pension reform, those contributions would have been approximately $2 million, a $534,000 difference, according to Treasury projections. 

The savings are certainly welcome, said township manager Scott Carew. "I appreciate this governor making the effort ot address this area ... Unfortunately his predecessors did not do any favors for local government."

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.

Carew explained the decrease in pension payments is especially helpful in light of other costs that increase year-to-year that are beyond the township's control, i.e. tax appeals and health benefits, to name two.

However, he pointed out, the township's 2014 pension contributions—while significantly lower than they might have been without reform—are still a 7 percent increase from 2013. 

"It's not hurting our budget as much. But it's still an increase," Carew said. 

The township is not the only entity that will experience savings. The Moorestown School District is projected to save $153,918, and fire districts 1 and 2 will save $13,870 and $4,207, respectively.

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.