Actuaries Abetting Convenient Ignorance

Vincent Prieto, Speaker of the New Jersey General Assembly, gave a podcast interview where, when asked about the bankrupt Transportation Trust fund and the need for a gas tax, saw that as a debt that should not be passed on to our children and grandchildren:
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Yet on the pension issue:


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Phase-in is a euphemism for not making the full contribution and it never occurs to Speaker Prieto that the money NOT being deposited each year is going on the tab of those same children and grandchildren.

But Vincent Prieto is a politician unable to grasp basic mathematical concepts when they don’t coincide with his mission (repaying campaign donors) so nobody expects rational thought to underpin the positions he is assigned.

But what about those actuaries he ‘went with’ who assured him that a “five year phase-in would work”? Is there an ASOP 51 that reads:

Determining Pension Contributions for Public Plans

Category: Pension
Status: Adopted in New Jersey
Summary: Develop an Annual Required Contribution using generally accepted actuarial methods and then reduce it to what your client/politicians want as long as:
  • a law is passed to allow it,
  • a whole number is in the numerator and denominator,
  • maximum the denominator can be is 5, and
  • E&O is paid up

 

 

11 responses to this post.

  1. Posted by Tough Love on March 21, 2016 at 2:05 pm

    I believe that Vincent Prieto, Speaker of the New Jersey General Assembly, being the most unwavering supporter of BIG government, BIG Public Sector pensions & benefits, and BIG taxes ….. is the MOST dangerous person to NJ’s financial future.

    He even makes Sweeney, who seeks to kiss every Union butt in sight in his quest for the next NJ governorship, look like a piker.

    Reply

    • Sweeney is one of the most reality-based Democrats, IMO.
      He was one of the sponsors of Chapter 78 and he is frank that if NJ loses Berg v Christie that NJ will be “bankrupt.”

      Sweeney also acknowledges that NJ’s school aid law, SFRA, cannot be fully funded and that aid redistribution is appropriate.

      Reply

  2. Posted by Tough Love on March 21, 2016 at 2:14 pm

    I just listened to the Prieto video ………

    I find it extremely objectionable that ALL of these politicians finds nothing at all :”wrong” with assigning ALL natural revenue growth (associated with the assumed growth in NJ’s economy over the next few years) to go 100% to just 10% to 15% of NJ’s populace…. it’s Public Sector workers.

    BS …. Step #1 (of many) …. FREEZE their pension simply to STOP digging the financial hole we are NOW in deeper every day.

    Reply

    • Posted by The Resident Nutcase on March 21, 2016 at 2:19 pm

      Wash, Rinse…..Repeat!

      Reply

      • Posted by Tough Love on March 21, 2016 at 2:20 pm

        Why am I not surprised that you (a Public Sector taker) would NOT find that structure objectionable?

        Reply

        • Posted by Anonymous on March 21, 2016 at 7:31 pm

          Wonderful discourse!! Public Sector Taker…..TL you would say that if the man had a salary of $25000 and no pension. Lol That’s what I mean about you. There is no compromise or middle ground. Your hatred of public sector workers shows through bright and clear when you say comments like that. We should just have volunteers from the community to police our towns and educate our children!! But not you of course….your better than the that. You probably never volunteered for anything worthwhile in your whole life.

          Reply

          • Posted by Tough Love on March 21, 2016 at 8:20 pm

            Interesting …..

            First you say something completely stupid ….”Public Sector Taker …..TL you would say that if the man had a salary of $25000 and no pension.”

            Then, believing that you have indeed fooled the reader into believing that statement, you proceed to use IT (that false statement) as THE BASIS for a conclusion ……… “There is no compromise or middle ground.”

            Surely one of the Public Sector’s “best and brightest” ???
            ——————————

            I do not hate ANY Public Sector workers/retirees….. and respect those who are honest, ethical, and hard working.

            However I will continue to strongly advocate to reduce their grossly excessive pensions & benefits.

            ———————————

            You fool nobody with these comments. While I have ALWAYS advocated for EQUAL Private/Public Sector “Total Compensation” (wages + pensions + benefits) in comparable jobs, you refuse to accept EQUAL and wanting more, MUCH MUCH more.

            Sorry, but Public Sector workers are NOT “special” and deserving of a better deal …..on the Taxpayers’ dime.

          • Posted by Tough Love on March 21, 2016 at 8:30 pm

            Anon,

            Also interesting that you suggested that I never volunteered for anything. Actually I have and for many years. but in one case was turned down. I offered to volunteer at my child’s school library as they appeared to need extra help at busy times.

            At first the school administration seemed very receptive, but the teacher’s Union shot it down ….. supposedly a “volunteer” would be interfering with the potential hiring (which was not planned or budgeted for) of a potential additional Union employee. So the library went without my free services, and of course nobody was actually “hired”.

            Yup …… “it’s all for the children”.

            The Unions, and “takers” like yourself should be proud.

    • Also, if we get assumed growth in NJ’s economy would there be no natural expense growth too?

      Reply

  3. Posted by dentss dunnigan on March 21, 2016 at 2:39 pm

    I think our hypcritical politicians are getting a bit worried about public backlash http://www.nj.com/politics/index.ssf/2016/03/lawmaker_let_nj_legislators_judges_carry_handguns.html#comments

    Reply

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