Public employee unions in New Jersey, through NJ Spotlight, will in three weeks hold a roundtable to discuss:
How do you reform a system that’s at least $44 billion in debt and saddled with retiree healthcare costs that are spiraling out of sight?
Due to years of underfunding, New Jersey’s public-employee pension system is at least $44 billion in debt . The retiree healthcare system is an even bigger hot spot, as costs spiral out of control. With baby boomers retiring and the costs of the system threatening to strangle all discretionary spending, officials are searching for a way to solve these problems. Democrats are looking to bolster the system with guaranteed payments. Republicans are hoping to transform the system using 401(k)s. Both parties are looking at ways to create lower costs through efficiencies in the health system.
Join NJ Spotlight July 8th when state and regional leaders gather to discuss the problem and possible solutions. Learn how this issue can affect the retirement of public employees and impact taxpayers and services.
It should be cathartic at least………….but productive?
Actuarial valuations are supposed to be a best estimate. It should be as likely that liability values are over- as under-stated. For public pensions in general, and New Jersey in particular, that is hardly the case and everyone at least senses it.
Note that the ‘at least $44 billion’ in state debt came from headlines when the July 1, 2015 actuarial reports came out and is supposed to be official. The real amount of the state unfunded liability is far higher (or $0 if the state is now legally allowed to arbitrarily cut all benefits) and that should be topic 101 at this roundtable since solutions to a $44 billion problem would be far different than those to a $150 billion one.