New Jersey Pension Data

A story on njspotlight about New Jersey Senate President Stephen abandoning the idea of having a ballot question that would ‘guarantee’ funding of the state retirement system ends thusly:

“I’ve got to face reality with what we’re dealing with,” Sweeney told reporters yesterday. “It’s not sound fiscal policy to not know what a major cost is.”

But, due to the politician/actuary cabal that has been developing ridiculously understated liability and contribution amounts, that ‘major cost’ has been willfully unknown which has led us to….

Paring down our Depletion Ratio spreadsheet to only New Jersey’s plans as of July 1, 2015 shows $9.6 billion being paid out of a fund that is supposed to have $84 billion (though the NJDOI website puts the asset figure are $72 billion lately) with $4.1 billion coming in.

At this pace all the money is gone in 15 years (much sooner for some plans like the judges who have 5 years).  This includes all member contributions that would be lost leaving a deficit in the range of a quarter trillion dollars.  That is our reality and something Sweeney (and his co-conspirators) have failed to face for decades.

 

11 responses to this post.

  1. Posted by Anonymous on August 5, 2016 at 10:51 am

    Sweeney’s a Democratic Trump, when challenged and irritated he acts irrationally. Like the alleged bribery; campaign contributions for pension amendment. Even IF true doesn’t he implicate himself and ALL politicians at some level for prior campaign conttibutions?

    Reply

    • Posted by dentss dunnigan on August 5, 2016 at 1:32 pm

      That’s the best part ,now he basically confirms what taxpayers have suspected the unions/employees bribe their boss for better benefits and wages …TL had it right all along .

      Reply

      • Posted by Anonymous on August 5, 2016 at 1:41 pm

        True and we can disagree to what extent but we can agree that it’s not just PWs!

        Reply

      • Posted by Anonymous on August 5, 2016 at 1:44 pm

        Forgot to add then there’s the Donald way, make billions on the backs of, for or the most part very modestly paid employees, your workers who are barely getting by – America the Beautiful.

        Reply

        • Posted by bpaterson on August 5, 2016 at 5:44 pm

          “for the most part very modestly paid employees”, if so why are we over $200 billion in underfunding. Just blaming compounding, doesn’t create those numbers

          Reply

      • Posted by Anonymous on August 5, 2016 at 7:11 pm

        “TL had it right all along”, so did the farmers, oil companies, banks, insurance companies, and any other special interest group that comes to mind that’s benefited at the hands of taxpayers via politicians!

        Reply

  2. Posted by George on August 5, 2016 at 8:49 pm

    Here is a compromise amendment. The state does not have to fully fund the pension scheme. Each year the governor has to present a budget that fully funds the pension scheme, and the legislature has to vote on it. If they vote it down, business as usual. But they will be forced to see how ugly it would look like, and they would have to formally reject full funding. This would be done every year.

    Reply

  3. […] exactly a crisis when compared to New Jersey which has a DR of -6.64% and 15 years left. What this tells me is that Illinois is making an effort […]

    Reply

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