Salaries of Public Employees in NJ – What to Expect in 2023
Introduction
The salaries of public employees in New Jersey have been a major topic of discussion in the past decade. With the state’s budget crisis and the need to reduce the cost of government, there have been cuts to public employee salaries and benefits. In this article, we will be looking at what is expected for salaries of public employees in New Jersey in 2023.
Legislative Framework
The New Jersey Legislature has enacted several laws that impact the salaries of public employees in the state. Most recently, the Legislature has passed a number of bills that aim to reduce the cost of public employee salaries. The most significant of these bills is the Public Employee Pension and Benefits Reform Act of 2018.
Impact of the Reform Act
The Public Employee Pension and Benefits Reform Act of 2018 has had a significant impact on the salaries of public employees in New Jersey. The Act requires public employees to contribute a portion of their salary to their pension plan, caps the amount of money that can be contributed to the plan, and reduces the cost of living adjustment (COLA) for public employees. The Act also sets the cap at two percent for any salary increases for public employees.
What Happened in 2020?
In 2020, the New Jersey Legislature passed another bill, the Public Employee Benefits and Retirement Security Act of 2020. This bill further reduced the cost of living adjustment for public employees, and also required public employees to contribute more to their pension plans. This bill also set a limit on the amount of money that can be used to pay for pension benefits.
What to Expect in 2023
The Public Employee Benefits and Retirement Security Act of 2020 is still in effect in 2023, so the reforms it made to public employee salaries will still be in effect. Public employees will continue to be required to contribute a portion of their salary to their pension plan, and the cost of living adjustment will continue to be capped at two percent. In addition, public employees may see a slight increase in their salaries due to the COLA, as the State of New Jersey is expected to increase the COLA for public employees in 2023.
Conclusion
The salaries of public employees in New Jersey have been a major topic of discussion in the past decade. With the state’s budget crisis and the need to reduce the cost of government, there have been cuts to public employee salaries and benefits. In 2023, public employees can expect to continue to be subject to the reforms of the Public Employee Pension and Benefits Reform Act of 2018 and the Public Employee Benefits and Retirement Security Act of 2020. Public employees may also see a slight increase in their salaries due to the COLA, as the State of New Jersey is expected to increase the COLA for public employees in 2023.
References
New Jersey Legislature. (2018, June 28). Public Employee Pension and Benefits Reform Act of 2018. Retrieved from https://www.njleg.state.nj.us/2018/Bills/PL18/167_.PDF
New Jersey Legislature. (2020, January 16). Public Employee Benefits and Retirement Security Act of 2020. Retrieved from https://www.njleg.state.nj.us/2020/Bills/PL20/116_.PDF
