“Dreadful” NJEA

Chris Christie let off a little steam today, primarily directed against the New Jersey Education Association (NJEA).  According to nj.com:

Christie unleashed against the NJEA in his first public comments to reporters after Sweeney asked prosecutors to investigate threats by that union and the Fraternal Order of Police to withhold all campaign contributions over a feud about a voter referendum on public worker pensions.

“This is a dreadful group of leaders and for the Senate president and others in the Democratic caucus to join that chorus, I welcome them — very late — to the amen chorus about the fact that the NJEA is the single most destructive political force in this building,” Christie said, referring to the New Jersey Statehouse.

“It’s not even close. There’s not even a close second to these people,” he said. “(They’re) the most selfish, destructive people in this building — and everybody in both parties knows it.”

No details but the practice of purchasing politicians and abetting a system of legalized bribery is certainly deplorable though for Christie (the sellout king) only when others do it.

However, where Christie has a point (though I’m sure he does not yet realize it) is that the NJEA (like several other unions) has done a terrible job in getting benefits for their members funded properly but when it comes to their own Defined Benefit plan:

NJEA-FR

Data from the latest 5500 filing:

Plan Name: New Jersey Education Association Employees’ Retirement and Trust Fund
EIN/PN: 21-0524390/001
Total participants @ 8/31/15: 534 including:
Retirees: 266
Separated but entitled to benefits: 12
Still working: 256

Asset Value (Market) @ 9/1/14: $336,705,067
Asset Value (Actuarial) @ 9/1/14: $314,088,231
Value of liabilities using PPA rate (6.47%) @ 9/1/14: $241,769,877 including:
Retirees: $162,821,038
Separated but entitled to benefits: $647,710
Still working: $78,031,129

Funded ratio (MV): 139.27%
Funded Ratio (AV): 129.91%
Asset Value (Market) as of 8/31/15: $322,348,168
Contributions: $15,000,000
Participant Contributions: $1,094,485
Payouts: $13,647,219
Expenses: $1,866,095

Oh, and the NJEA also has a 401(k) plan with $36 million in it on top of that 139% funded Defined Benefit Plan.

29 responses to this post.

  1. Posted by MJ on August 17, 2016 at 8:36 am

    Is this entirely funded by members’ dues?

    Reply

  2. Posted by Anonymous on August 17, 2016 at 8:38 am

    Wow maybe the NJEA should take over management of the TPAF – LOL!

    Reply

  3. Posted by Anonymous on August 17, 2016 at 9:22 am

    The UNION representing NJEA employees should be praised. While the NJEA, the UNION representing teachers should be scorned…go figure.

    Reply

  4. Posted by George on August 17, 2016 at 1:36 pm

    The key is 256 members. You can have lush benefits and a lean staff, or lean benegits and a bloated staff. But you can’t have both lush benefits and a bloated staff.

    Reply

  5. Go figure. In NY the retirement plan for employees of the teachers’ union is underfunded, and the union is demanding pension cuts.

    Meanwhile, the NJEA has a TV ad about pensions. I actually agree with it, until the final line when the ad says those who made the promises and got the benefits should pay.

    Those who made the promises and got the benefits are dying off and retiring to Florida and the Carolinas, and moving their businesses out of state. They aren’t going to pay. Generation Greed pillaged, and not just with regard to pensions and not just in New Jersey.

    Today’s taxpayers actually only owe the cost of the retirement benefits being earned today for work being done today. Anything more they pay is not something they owe, but a sacrifice imposed on them by the selfish former residents of NJ, public employees and politicians.

    Reply

    • Here is a link to the article about the NYSUT trying to cut pension benefits for its own employees. It was leaked to the press.

      http://blog.timesunion.com/capitol/archives/265938/nysut-facing-pension-spikes-looks-to-cut-benefits/

      Reply

    • Posted by boscoe on August 17, 2016 at 2:04 pm

      Whose payroll taxes will be paying for your social security checks? Whose benefits are your payroll deductions financing? It’s an inter-generational thing. You might as well be complaining about your taxes going to finance K-12 education — and I’m sure you are. Whose taxes paid for your education? What about the 20 or so years “your” taxes were NOT being used to pay for retirement benefits that were being earned during that period?

      Reply

      • Posted by S Moderation Douglas on August 17, 2016 at 3:31 pm

        This is the “other” definition of generational equity; intergenerational risk sharing…

        “Hence there are two distinct virtues to defined benefit plans, both based on the fact that these plans allow large numbers of participants to pool their risk. This means that even though some participants may live longer than average, their income is secure their entire life, because by definition whoever collected more from the plan by living longer than average had their higher than average withdrawals offset by those whose lifespans were shorter than average.

        vvvvvvvvvvvvvvvvvvvvvv

        And because risk in a defined benefit fund is shared across generations of workers, during eras when investment returns are low, existing workers guarantee extra cash coming into the plan to keep it solvent, and during eras when investment returns are high, surpluses are fed into the pension fund that can also be used to make up the shortfall during lean years.”

        Reply

        • Posted by dentss dunnigan on August 17, 2016 at 3:59 pm

          SS taxes are equal to 14% of your income ,of which when you retire you will be getting about 4.5% of that back per year that is far less than a DB pension where most get back 30% plus of their contributions each and every year .Up till a few years ago it wasn’t unthinkable to get back your total cash balance in the first 2 or 3 years of retirement . it’s how it became now unsustainable

          Reply

      • “What about the 20 or so years “your” taxes were NOT being used to pay for retirement benefits that were being earned during that period?”

        I don’t live in NJ. I live in NYC, where the situation is completely different.

        Here, we did pay enough to pay all the pension promises, and then some. But the unions got those pensions retroactively increased over and over and over again, and now we are being forced to pay even more even as services are cut.

        Generation Greed pillaged, and the only difference is from place to place is the distribution of the guilt between past public employees and their unions and past taxpayers.

        During most of the past 30 years the overall tax burden in NJ was well below that of NYC, and most public services were better. The people who benefitted from that, however, are going, going gone — leaving their burden to others.

        https://larrylittlefield.wordpress.com/2016/01/25/the-suburban-generations-destroy-the-suburban-states-and-nation/

        Reply

        • Posted by Anonymous on August 17, 2016 at 6:12 pm

          Citing your last paragraph before the link, so “retirees” now have to shoulder the burden going forward?

          Reply

          • Anyone who wants to exempt themselves from the sacrifices imposed by the Generation Greed era does so at the expense of others similarly, or even more disadvantaged.

            In New York City, where the pension fund is just as underfunded but due primarily to retroactive pension increases, public employee retirement income is exempt from state and local income taxes. The unions are also working to get pension income exempted from calculations of whether one is a “poor senior” entitled to lower property taxes. And the unions have cut a deal to slash the pension benefits of future workers. And school services have been cut.

            Perhaps retired NJ teachers feel they’ve been ripped off. But guess what, future taxpayers have also been ripped off. If you are going to say you are entitled to everything you are entitled to, don’t kid yourself that only those who deserve to pay will be paying. For the most part they will not be paying.

  6. Posted by Anonymous on August 17, 2016 at 5:30 pm

    the difference is that njea workers are private employees, not government or public employees like teachers. therefore, private pension plans are required by the federal govt to be funded at or near 100%. it’s the law for private plans, but not for gov’t plans.

    Reply

  7. Posted by Anonymous on August 17, 2016 at 6:49 pm

    It seems like the idea of the American dream and paying it forward has changed with the mentailty of the post baby boomers. They don’t want to work for themselves let alone previous generations. Although they are ready and waiting for the reading of the Will. There’s no more going concerns, only concerns about who’s going.

    Reply

    • That’s the problem. And it started before the boomers.

      https://larrylittlefield.wordpress.com/2014/08/10/generational-equity-and-the-legacy-of-todays-politicians-update/

      Until people start using the words “Generation Greed,” and those coming after take over and face the fact that Generation Greed robbed them and they have no choice but to decide on fair allocation of the paid (with no one exempt), then Generation Greed will just keep grabbing and it will keep getting worse.

      Reply

      • Posted by Anonymous on August 17, 2016 at 10:53 pm

        Fair enough, so why do you choose to live in NYC? Why don’t you exercise your free market choice and move to a more favorable state/local government or for that matter country? Thereby negating all such “generation greed” tax burdens?

        I know the above doesn’t address the root cause of your blog discussion points but here’s the problem; how does one get out of something when they have so much invested in that something?

        Let’s be honest it’s not just PWs or SS receipents. For example, considering you live in NYC, what about multi billionaire Donald Trump (clearly there are plenty of others). Sure he took risks and should be rewarded, that’s capitalism – to a degree. But what about all the small to medium vendors he left high and dry with his bankruptcies, not to mention the minimum wage legal and illegal workers he employed in the process.

        This will never happen because it’s not palatable or electable. Our only chance is a reasonably measured scale back for current and soon to be retirees. A sliding scale back for mid range and new workers along with a significant tax increase to start paying down the “sins of our past”.

        As far as health care; until we make it a not for profit national single payor system we’ll always be chasing our tails!

        Reply

        • New York City is in its second round of having its future sold out. In the 1960s pensions were retroactively increased, debts were run up, and the infrastructure was allowed to deteriorate. Tens of thousands and a million jobs fled.

          By the time I came along (early 1980s) things weren’t good, but they were getting better. The infrastructure was being reinvested in. The debt burden was falling as a percent of income. The pension underfunding from the 1960s Lindsay pensions were being paid off, and the less rich pension benefits of newly hired public employees were being paid for. And in the early 1990s, between housing bubbles, the house we bought was fairly priced.

          And then there was another party — unions, contractors, those seeking tax cuts, everybody in Generation Greed.

          So what happens now? We are heading for more deterioration of public services — taxes are already higher than in the 1970s as a percent of income. But this time, what was done to NY and many older cities in the 1960s and 1970s has been done to much of the country. There are fewer places to run.

          Texas? I like my part of the country. And besides, rapid population growth is merely temporarily coverage up the same sorts of decisions there — something exposed when the growth stops. The pension funds of the cities of Dallas, Fort Worth and Houston are all broke, and they are in fiscal crisis too.

          Reply

          • Posted by Anonymous on August 18, 2016 at 11:05 am

            Total doom and gloom, great thing to instill in your children. Sounds like survival kits, gold bars, and a bomb shelter are your best bet.

            Sure things are spiraling but everything goes in cycles. Some would say this is different but the same can be said of previous generations. Yet were still here and surviving, and at times (in cycles) thriving.

            See you in 50 years assuming the economic tsunami hasn’t swept us all into the abyss.

          • What I hoped to instill in my children, and believe I have succeeded, is that they don’t need a lifestyle that most people can only obtain at other people’s expense in order to be happy. Including decades in retirement.

            “Let’s be optimistic that things will work out” has been the excuse of a lot of selfish behavior, personal, economic, political, in the Generation Greed era.

            Imagine those under 40 ganged up on those older and decided to cut off all pension payments, claiming optimism that those who lost them would get by somehow? See the difference there?

            Generation Greed always took the position that “children are resilient” when pursuing its own ends. And that they will continue to be “resilient” at age 60. Meanwhile, the life expectancy of the first generations to follow in the wake of Generation Greed has started to fall.

            https://larrylittlefield.wordpress.com/2015/11/08/death-is-the-ultimate-statistic-ii-the-most-important-news-in-ten-years/

            That isn’t just a bunch of dollar numbers on a page. How can anyone claim everything is fine in the face of a fundamental fact like that?

          • Posted by Anonymous on August 18, 2016 at 2:03 pm

            I noticed no specific mention as to the “Trump’s” of the world as it relates to “generation greed” and potential impact on and solutions for the future?

            In a previous post here you made mention of “no exceptions”. To me that means no tax breaks for businesses and the rich, no governmental subsidies and grants (I.e. farmers, bio medical research, on and on) no student loans, no hand outs for veterans. No exceptions means no exceptions, right?

            A sort of a global or at least national reset. Measurable decrease for retirees, etc. I’m sure there will be plenty of jobs available for those who need to re-enter the workforce.

            That’s my point as to once you’ve traveled so far down the road it’s hard to turn around even when you know the end of the road might be around the next curve.

            Other then fluffy nonsensical rhetoric from both sides of the discussion how does one propose to do it in a systematic workable plan?

        • Speaking of Trump, and Clinton, does not this choice of President speak poorly of their generation?

          https://larrylittlefield.wordpress.com/2016/07/04/hey-woodstock-generation-these-are-your-presidential-candidates/

          Reply

          • Posted by bpaterson on August 18, 2016 at 4:16 pm

            LL-back in 1996 when greatest gen dole lost to baby boom Clinton I said that’s it the end of good society as we know it. It certainly was down hill from there, except those who wiggled there way on the receiving end of a corrupted system

          • By that point a lot of future selling had already been going on since 1981.

          • Posted by Anonymous on August 18, 2016 at 5:00 pm

            Oh you mean the Clinton that left office with a balanced budget or was that just numbers on a sh*t of paper….

          • Posted by Anonymous on August 18, 2016 at 5:14 pm

            Continued silence on the filthy rich who obscenely raped and pillaged everyone’s economic future! The idea of putting this solely on the shoulders of PW’s is bunch of bias unsubstantiated crap….

          • Posted by Anonymous on August 19, 2016 at 6:07 am

            LL regarding your previous post here about what you’ve, in your opinion, successfully instilled in your kids. So what righteous career path have they choosen, doctor, lawyer, banker, certainly not a PW (ie “Generation Greed” Federal, Military, State, or Local) and I’d hope they or the entity they work for wouldn’t accept “generation greed” money. But then again you and yours think it’s your money anyway – twisted, predictable, and one sided private sector thinking

  8. Posted by Anonymous on February 3, 2017 at 1:50 pm

    Typical union rape the members and the scum that work at the hall live fat.

    Reply

    • Posted by Anonymous on February 3, 2017 at 1:55 pm

      No he means the Clinton who cut inter office communications between intelligence offices of are federal government. Main reason we didn’t prevent 9/11. You libtard moron.

      Reply

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