PARSIPPANY — Gov. Chris Christie today announced that he has formed a special bipartisan commission to study ways to further reform New Jersey's troubled public-worker pension system — an issue that has sparked an outcry from Democrats and union leaders.

"If we don't do more and we don't do it now, we'll be forced to choose between funding what matters or a bloated, unaffordable entitlement system that we couldn't muster the will to fix once and for all," the Republican governor said a news conference outside the town hall in Parsippany-Troy Hills.

Christie's announcement comes as he tours the state warning that even though he and Democratic lawmakers overhauled retirement and health benefits for government employees three years ago, the system — which is underfund by more than $40 billion and growing — will ruin New Jersey's finances if more changes aren't made. He had vowed to introduce a plan to combat the problem by the end of the summer.

Now, Christie said the members of the commission — who will come from outside his administration and won't be named until next week — will provide him with a status report soon after Labor Day and give final recommendations by the end of September. He will then decide on a plan.

"This issue is more difficult and complex than I expected it would be," the governor said. "I came to the conclusion that I wanted outside help to come and give me some advice before I made a proposal. It's no more complicated than that."

But the state's top two Democratic lawmakers immediately slammed Christie's announcement today, saying he reneged on the law he signed three years ago, which called for public workers to pay more into the system, while the state promised to gradually increase payments to it.

"The governor broke his promise to fund the pension system," state Senate President Stephen Sweeney (D-Gloucester) said in a statement. "The fact remains that the problems will be fixed if he simply keeps his word and provides the appropriate funding. Until the governor decides to keep that commitment, there will be no further discussion between us on pensions."

State Assembly Speaker Vincent Prieto (D-Hudson) offered advice to the new commission.

"We already know what the first recommendation should be: Don't break promises to properly fund the pension system and create worse fiscal problems down the road." Prieto said in a statement.

Christie worked with Democrats to introduce the reforms in 2011 after years of past governors shortchanging the system — a plan that brought him national praise from Republicans.

But the governor — a potential candidate for the party's 2016 nomination for president — has said repeatedly over the last few months that the changes didn't go far enough. Then in June, when suddenly faced with a $1.7 billion shortfall in the state budget, Christie opted to slice payments to the system by $1.57 billion to fill the gap, saying there was no other solution.

Though Democrats had suggested raising taxes on millionaires and businesses instead, Christie said he would not place the burden on residents who live in a state that already has among the highest property taxes in the nation.

He said today that as liabilities in the system continue to surge, taxpayers would face an annual cost of about $90,000 for each state employee's salary and benefits. Christie added that that New Jersey would have to raise taxes by more than $4 billion over the next four years to cover ballooning pension payments.

"We don't live in a fantasy world," the governor said. "The fact is that unless there are changes made to the system itself and the benefits that it promises, we cannot tax our citizens enough, even if we wanted to, to be able to pay for what’s down the road."

Christie said residents would leave the state in droves if such taxes are instituted.

"What I think you'll see is fleeing at the border," he said.

Christie said the commission will study the state's pension history, pensions in other states, benefits in the private sector, and research that the state Treasury Department has already done on the issue. The five members, he said, will consist of non-partisan experts in pensions and benefits.

Their goal, the governor added, is to think "big and bold" and present "long-term" solutions.

"No idea is off the table," he said.

More than a dozen unions have sued to block the governor's cuts, which experts have said will saddle the state with even more long-term debt and could trigger more credit-rating downgrades from Wall Street.

Today, the Policemen's Benevolent Association said such a commission won't help the matter.

"The recommendations of the past studies have been ignored by Gov. Christie, and now he wants to create his own committee," the union said in a statement. "The truth of the matter is that politicians including Governor Christie have repeatedly short changed the pensions and are now looking to create alternate solutions other than paying their obligations."

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