Officials reported the fund lost 0.87 percent in the fiscal year that ended in June, based on unaudited figures.
Not only were the numbers unaudited but the June, 2016 Investment Reporting Package left out much (primarily payouts) that would provide some perspective so, piecing together information from different sources, here is where the New Jersey pension system might stand (in billions):
Pareto efficiency, or Pareto optimality, is a state of allocation of resources such that no individual can be made better off without making at least one individual worse off. When inefficiency exists, it is possible to improve the well-being of some without injuring others. Transactions that decrease efficiency destroy value, creating deadweight losses, and should be avoided. Institutions maximize value by exploiting profitable opportunities and by minimizing deadweight costs. Just as in mechanics, friction is the enemy of efficiency. Financial frictions may be created by things such a s transaction costs, taxes, lack of transparency, actuarial smoothing, regulatory barriers and costly bankruptcy.
Millenial Moola thinks it’s teachers from the police but the reality is a lot more complicated – and it may even be the other way around.
On August 30, 2016 trustees of the New York State Teamsters Conference Pension and Retirement Fund out of Syracuse, NY became the ninth multiemployer (union) plan to file for benefit cuts under MPRA in an attempt to avoid insolvency and this one has a twist (all retirees @ 12/31/15).
From their latest 5500 form here is the plan’s relevant data:
Truth in Accounting released a report today on the Financial State of the States based on data provided by the states.
New Jersey came in last based on the numbers but we have two, if not entirely unique at least exaggerated, burdens to bear here that put us in a much worse fiscal position: