Officials reported the fund lost 0.87 percent in the fiscal year that ended in June, based on unaudited figures.
Not only were the numbers unaudited but the June, 2016 Investment Reporting Package left out much (primarily payouts) that would provide some perspective so, piecing together information from different sources, here is where the New Jersey pension system might stand (in billions):
6/30/15 value: $79
6/30/16 value: $72.9
And some observations:
- Twice as much is leaving the plan in benefit payouts and expenses as is coming in from deposits and about $2 billion of those deposits are member contributions that will need to be returned upon plan bankruptcy.
- Had the trust made 7.9% it would have meant $6 billion in gains instead of 0.7 billion in losses.
- With $21 billion of those assets in Alternative Investments and another $30 billion in equities this pension system is one market correction (or Trump victory) away from having only enough assets remaining to pay back member contributions.