New Jersey Senate president Steve Sweeney took to twitter to argue for putting more money into the state retirement system:
Glad my bill to pre-pay $300M towards next year’s pension payment passed sen. budget committee. Paying $1 now saves $3 later
I understand that these tweeters are not to be taken seriously (except by lazy journalists) as nobody is under oath here and most tweets seem to be made under the influence of either prepubescent angst or liquor but is there no truth filter?
Looking strictly at the math, 8% interest growth means 15 years later. These plans have nowhere near 15 years of existence left unless the state comes up with a plan to fund the real cost of the benefits promised. In terms that the Senate president might understand – that means paying $166 billion now which would save $498 billion later.
The dramatics play out in the legislature today and you should be able to hear it here if interested.