Thoughts, Blue Jersey? 12mileseastofTrenton’s already started off a discussion. Promoted by Rosi.
I started this diary to promote discussion about California’s AB340, passed in 2012, that changed California’s pension system. It didn’t solve the whole problem but achieved important financial savings.
One of the main elements was a cap on the pensionable income. The cap would be at the same level as Social Security. So for now, it would be $110,000. In other words, a worker would only accrue a pension based on their average income unto $110,000. So in effect, if they earn a 50% pension (based on 25 years service), they would receive $55,000 a year.
Such a cap would preserve current pensions for low and middle-income workers but reduce pensions for upper-class workers, for whom pensions are not as necessary.
I know, I know: there are a lot of $110,000+ workers in NJ who are doing important jobs and $110,000 isn’t much in New Jersey. But the same can be said of California. But we have to find savings somewhere.