Education Association Says Workers Are Being Devalued in Reform Measure

While politicians are hailing the passage of the pension and benefit reform for state workers in the New Jersey Senate as a rare moment of bipartisanship, workers are noting the reform is intended to reduce an unfunded liability caused by both parties using money from the pension fund.

And in response to the recent publication of  teachers' salaries, Warren Township Education Association President Frances Blabolil said that's only a "partial story," adding Senate bill S-2937 "will cost each NJEA teacher member thousands of dollars every year."

In a statement released Thursday, Blabolil points out that as costs of living increase, "the salaries of professional educators will continue to drop in value."

We ... have consistently paid our way with contributions to health care and our pension system only to find ourselves and our profession devalued," she added. "Historically, the legislature has continually taken the money from our pension and health benefit fund in order to supply the coffers of the state. Surplus monies were not reinvested; they were taken to balance the state budget."

Blabolil added the bill will eliminate the cost of living adjustment for current and future retirees, which will "diminish the purchasing power of retirees anywhere from 31 percent to 44 percent," and mean no significant increase in retirement benefits for 20 to 30 years.

"This is in addition to drastic cuts and reduction to our collective bargaining rights, a process which provides a fairly negotiated benefit and income package serving to keep Warren Township teachers competitive and drawing the best of the best to teach our students," she added.

Blabolil offered a scenario to illustrate the impact of the measure:  "Jane is a teacher with a family.  She earns a state-average salary of $66,000.  Today, she contributes $4,620 toward her pension and health benefit premium.  Hardly the free benefits that so many people seem to think public employees receive.  After all deductions and taxes, her take home pay is $46,035.  At this salary, she would never be able to afford a home in our community.     

"Under this new bill, by 2015, her contributions for pension and benefits will rise to $11,650.  That means that even with modest 2% raises that is spread throughout the entire membership, her take home pay will shrink to $41,912—a net loss of thousands in take home pay.

"Five years from now, Jane will have to support her family on less per year than she is making today, even as inflation is sure to resume.  This translates to a nearly permanent salary freeze, a huge tax increase on middle-class workers or, simply, just thousands of dollars every year out of pockets of hard-working teachers and school employees.  This is nothing short of devastating."

"In addition to this situation, the effect of the elimination of the COLA on our retired school employees is devastasting," Blabolil said. "It is nothing short of out-and-out theft of retirees' hard earned pension.   If education is our state's and nation's top priority, this is hardly the way to promote, enrich and develop excellent education; nor is it a method to attract and keep talented educators in the profession.  

"The Warren Township educators are highly successful employees who deserve respectable salary and benefits as those received by other professionals with advanced degrees," she said.