NewJersey, like most other governments with troubled pensions, foryears paid less than what it owed to its retirement system, andGov. Phil Murphy says workers shouldn't pay the price for that.(Photo: Bloomberg)

(Bloomberg) –In New Jersey, some want public workers to give upbenefits to fix the state's underfunded pension system. That's puzzling toGovernor Phil Murphy.

“It's the state's fault that we've got the deficit we have,”Murphy, 61, said in an interview Thursday after speaking at theGlobal Climate Summit in San Francisco. “Why would you do that ifit's the state's fault?”

New Jersey, like most other governments withtroubled pensions, for years paid less than what it owed to itsretirement system, resulting in one of theworst funded among U.S. states and pressuring its creditrating.

Murphy said he's focused on reining in the costs ofhealth care instead of slashing public employee benefits. Heset up a commission with union representatives on board to come upwith solutions that would make both workers and the state pay lessfor good services, he said.

“We think that the holy grail is available,” Murphy said.“That's where we've chosen to dig in.”

Unions backed the campaign of the multimillionaire Goldman Sachsbanker. Since taking office in January, Murphy has approved laborcontracts that have included pay increases.

BenefitsPRO related reading:

The nation's top 10 publicpensions

Public pensions may be next crisis, PGIM's Huntsays

Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.