Christie Makes Headlines

The mainstream media will concentrate on Bridgegate,  ‘yes’ he is thinking of running for President, and Obama as a political partisan who can’t work with the other party but my three headlines from Chris Christie’s talk in Washington today:

‘We just missed it”:
As to the $807 million gap in guessing what state revenue would be for this fiscal year:
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Could it be that they “just missed it” because they were putting out what they knew politicians wanted to hear and were too scared for their own incomes to tell the truth (i.e. New Jersey public plan actuaries)?
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No more defined benefit plans:
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Four years ago I went to Trenton and spoke to two of the governor’s aides with this exact message on the insanity of having a defined benefit pension system when all parties have every incentive to lie about costs. Maybe they kept the notes.
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Most if not all of the $1.6 billion pension payment will be skipped:
There is no equivocation when asked about raising taxes but on the pension payment:
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5 responses to this post.

  1. Posted by Tough Love on May 14, 2014 at 2:40 pm

    Quoting … “Four years ago I went to Trenton and spoke to two of the governor’s aides with this exact message on the insanity of having a defined benefit pension system when all parties have every incentive to lie about costs. ”

    John, does that mean you support freezing the NJ’s Plans for future service of current workers and replacing them with a DC Plan ?

    Reply

    • I always have from the very fist time I looked at a New Jersey public plan valuation report and made the point that politicians can’t be trusted with defined benefit plans throughout:

      Which is separate from the actual benefits public employees deserve which I am not qualified to judge but at least it would be transparent with a DC plan.

      Reply

      • Posted by Tough Love on May 14, 2014 at 2:56 pm

        OK, fair enough.

        Reply

      • Posted by Tough Love on May 17, 2014 at 10:53 am

        John, I guessing you have read some of actuary Mary Pat Campbell’s blog articles, She’s quite the character and with an impressive resume. Her last post can be found here:

        http://pensiontsunami.com/blog/?p=178

        Quoting from that post:

        “The reason public pensions need outsized profits is that they have promised far more in benefits to current and future retirees than they can possibly pay. Good-government advocates can’t fix public pensions until they go to the source of the problem and pare back unsustainable promises to retirees.”

        Reply

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