Pity the actuary who has to value the true cost of New Jersey’s defined benefit pension promises when these three spiking games are considered:
Here is the back-story on the first example presented in the video:
Jim McGreevey, our gay-American former governor, was as of 2011 on the payroll of Kean University with a salary of $8,100* which apparently qualified him for accruing service credits in the Public Employees Retirement System (PERS). As governor he would have been pulling down larger salaries upon which his eventual benefit will be based. Looking at the retiree benefits for former governors we find:
- Brendan Byrne $35,773.20
- Tom Kean $22,816.92
- Christine Whitman $19,320.36
- Donald DiFrancesco $65,342.28 (who pulled off the same lecturer gambit for service – also at Kean)
- Jim Florio $54,183.60 (who pulled off the same lecturer gambit for service – in his case at Rutgers)
These were the people charged with overseeing and, lately, fixing the state pension system though their talents and predilections seem to lie more in leeching off of it.
* Per my reading of the PERS handbook (page 10 of 60) for Tier 3 he would need to make $7,800 to maintain membership.