Senate president wants federal loans to save pensions

The president of the state Senate is calling for the federal government to offer states low-interest loans to save their public employee pension systems.



Sen. Steve Sweeney unveiled his plan Wednesday at the State House in Trenton.



He wants Congress to approve loaning about $1 trillion to states, including more than $50 billion for New Jersey.



That would be enough to make up the state's unfunded pension liability. And he says the return on the investment for those funds would be far higher than the 1 percent interest the U.S. would charge.



He says the plan would allow states to save their pension plans and pay for other priorities while repaying the federal government.



Sen. Sweeney says he's trying to sell the idea to state legislative leaders around the country and to Congress.



The Associated Press wire services contributed to this report.


sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."