Millenial Moola thinks it’s teachers from the police but the reality is a lot more complicated – and it may even be the other way around.
Moola was looking at the last page of the April, 2016 Investment Report Package from the New Jersey Division of Investment which showed:
Since then the May, 2016 report has come out (which is the latest) with more of the same:
But this looks like a true-up as in the July, 2014 report we had transfers going the other way:
But when you look at the June, 2015 plan-year-to-date amounts:
a real discrepancy pops up as the actuarial reports for the plan year ended June, 30, 2015 show different contribution amounts being credited:
These differences are not readily explainable. If the Division of Investment reports $2,352,920,000 as being credited to the Teachers Plan then why is the valuation report only crediting that plan with $1,625,838,428? And why is the Police & Fire plan being credited with $1,300,599,795 when the Division of Investment has it getting $719,433,000?
To understand this a little better you need two other bits of information:
- Additional money coming into a plan helps the funded status and reduces the amount of the contribution developed.
- The numbers in the actuarial report match fairly closely to those developed for the ARC in the July, 2013 valuation (after adjusting for the state’s arbitrary reduction of the ARC for the plans they are responsible for funding):
That’s as far as I get. Those transfer amounts that the NJ Division of Investment is putting out appear to be meaningless. If not, then what are they used for and who benefits?