New Jersey is considering a $1 million contribution from a pensioner to a retiree-contribution plan for his or her children, according to a New Jersey lawmaker.
Sen. David J. Lautenberg (D-N.J.) told The Associated Press on Monday that the pensioner could get a plane ticket to fly him or her back to his or she native New Jersey, or a plane to fly the elder couple to New York City, where they have a home.
Lautsenberg’s pension fund includes $300,000 for his two children, ages 5 and 6.
“That would be a really good thing to do, and we should be able to do it,” Lautberg said.
“I don’t know that we can do it right now, but I think it’s an option.”
Sen. Chris Coons (D, Del.), who represents parts of Bergen County, Bergen and Ocean counties, said he would consider the proposal.
“I think it is appropriate for the state of New Jersey to consider, but it’s also important that it’s a private initiative,” he said.
He said he is aware of other states that have already used money from the pension system to help the retirement needs of its own people.
Senators have approved several bills to help fund the retirement of New York state workers.
The state has not had a budget since January, when Gov.
Andrew Cuomo approved a $20 billion pension plan for all state employees.
The pension plan has been criticized for its high interest rates and limited benefits.
The plan would pay out about $1.3 million to each retired state employee in 2019.
The average pension would rise by about $800 per year.
The bill also would allow retirees to take part in a pension plan if they don’t have health insurance and would pay for it through their state payroll tax.
It also would give the state a $400 million fund to help pay for future retirements, but only if it could pay for them in advance.
The proposed plan also calls for $500 million in additional revenue from a new pension fund to be set up for state employees who don’t qualify for state pension benefits.
The new fund would pay benefits starting at $20,000, and be administered by the state Department of Health.
The plan would also pay a 10 percent annual dividend for New Jersey’s employees.