New Jersey Senate Sends Benefits Reform Bill To Governor

TRENTON, N.J. (AP) -- The New Jersey Senate has given final approval to a bill raising pension and health benefits costs to the state's more than 500,000 government workers.

The Senate voted Monday to knock out a provision of the bill that would have restricted access to out-of-state health care.

The bill now goes to Republican Gov. Chris Christie, who has scheduled a bill signing Tuesday.

Christie has said the reforms should serve as a model for other states that are grappling with underfunded public worker pension programs.

"We are once again showing the people of New Jersey that our state is leading the way on the biggest challenges before us and remains unafraid to do what is hard but necessary," Christie said. "We are fixing our pension and health benefit systems in order to save them and in the process bringing fiscal sanity to our state."

The bill requires teachers, police officers and other public workers to pay a portion of their health insurance premiums based on income. Their pension contributions will also rise.

The state's retirement systems are underfunded by a combined $110 billion. Christie said the only way to guarantee pensions for the future was to have employees shoulder more of the costs.

The bill was muscled through the Legislature with support of Republicans and a few Democrats. Union members and most Democrats remained opposed.

(Copyright 2011 by The Associated Press. All Rights Reserved.)