The fight for pension justice in New Jersey
By Jeremiah Kleckner
I have served the people of New Jersey as an educator since 2005. When I chose this career, I was told about the humble dignity of being a teacher and the promise of a pension that would allow me to retire without fear of poverty. This was the deal I made in exchange for dedicating my adult life to educating and caring for our children from the opening bell until dismissal.
But before Gov. Phil Murphy took office, six governors, representing both parties, failed to fully fund our pension system, with some paying almost none of the state’s required share. Murphy quickly worked to correct that, and this year will make the state’s fourth consecutive full pension payment.
But the damage done by his predecessors lingers. Combined with the introduction of a tiered system that first began in 2007, that damage has eroded that promise for those who followed me into this field.
Tens of thousands of education workers now face the reality of reduced pensions or no pensions at all. For Tier 1 members (those hired before July 1, 2007), early retirement with full benefits is still possible. However, for Tier 5 members (those hired on or after June 28, 2011):
- A minimum of 30 years of service is required to retire if under age 65.
- Starting work at age 25 and retiring after 30 years at age 55 would result in a 30% reduction in your pension compared to Tier 1 members.
- Must work until age 65—10 years longer than Tier 1 members—to avoid reductions and collect full benefits.
The situation gets worse for those who were hired on or after May 21, 2010, and are working less than 32 hours a week. Rather than being enrolled in the Teachers’ Pension and Annuity Fund (TPAF) or the Public Employees’ Retirement System (PERS), they are enrolled in the Defined Contribution Retirement Program (DCRP). Years in the DCRP do not count toward the 25 years needed for post-retirement medical benefits. These paraprofessionals, secretaries, food service workers, nurses, custodians and transportation professionals deserve the same benefits as the rest of us, which they had before these degrading changes were made.
Tier 1 members also need to be wary of the “traps” set in our current system. A break in service longer than 24 months can lead to a loss of tier status and a shift to Tier 5 when returning to work. For example, someone who starts in Tier 1 but takes a multiyear maternity leave before returning to work may find themselves in Tier 5, facing a completely different retirement scenario just as they are starting to build a family of their own.
Become a Pension Justice Advocate
It’s time to recognize that the changes made to our pension system were a mistake and that we need to return to a strong, fair pension system that works for everyone.
If you are unsure what tier you are in, ask your local union representative to help you find out. This information is available in your personal benefits statement on the state’s Member Benefits Online System, or MBOS.
If you already know how to check your account, teach a colleague. Support your union with words and actions because this is an “everybody” problem that requires an “everybody” effort. And we need to support allies in the state Legislature and the governor’s office who have demonstrated through their actions that their pension promises mean something.
Visit the NJEA’s Pension Justice page—njea.org/pensionjustice—to advocate for your future and the futures of those who serve by your side. We are public servants from bell-to-bell. After that, we become the public and we deserve the pensions we were promised.
Jeremiah Kleckner is a language arts teacher at Perth Amboy High School and a secretary of the Perth Amboy Association of School Employees.