How to Start a Retirement Wave: Cut Benefits
For years, there's been talk of an impending wave of retirements in the federal government as baby boomers exit the workforce. To date, it has not yet materialized. But in New Jersey, Republican Gov. Chris Christie has found a way -- intentionally or not -- to kick-start a round of retirements among state employees: Slash their retirement benefits.
According to the Associated Press, Christie's specific proposals, unveiled Tuesday, include: "repealing an increase in benefits approved years ago; eliminating automatic cost-of-living adjustments; raising the retirement age to 65 from 60 in many cases; reducing pension payouts for many future retirees; and requiring some employees to contribute more to their pensions."
Even before Christie made his proposals official, state employees had begun lining up outside the door of the headquarters of the state's pension fund to apply for retirement benefits. Day after day, they've been coming in droves.
New Jersey isn't alone in its efforts to target civil service retirees: 19 other states also have implemented or considered cuts in public sector pension benefits.