New Official Pension-Hole Numbers

The New Jersey State Investment Council held their bimonthly meeting yesterday at which there was a presentation looking to explain how new accounting rules make the system’s funded status look SOOOOOO much worse. The new official GASB 67 numbers:

  • UNFUNDED LIABILITY: $135.7 billion
  • FUNDED RATIO: 37.48%
  • PLAN DEPLETION DATES: could start during the term of the next governor



20 responses to this post.

  1. Posted by dentss dunnigan on September 30, 2016 at 7:41 am

    Jeez …that makes ever manjack citizen of the state owe over 100K just for pensions ….break out your checkbooks ….or leave


  2. Posted by Anonymous on September 30, 2016 at 10:37 am

    At least the SPRS will still be intact but s/b interesting in 2022 when JRS is burnt out, wonder how the NJSC will rule?


    • Posted by Bpaterson on September 30, 2016 at 10:43 am

      juris group should be the first one to feel the heat, they dumped the abbot district fiasco on the state that sucked up the money that could have been going to pension funding of the past 15 years.


      • Posted by dentss dunnigan on September 30, 2016 at 11:36 am

        Not true …Abbott funding is from income tax receipts …which are constitutionally guaranteed to go to education ….


        • Posted by Anonymous on September 30, 2016 at 2:01 pm

          Partially true, some of the income tax receipts are used to fund the TPAF….have someone fact check that against NJ’s Budget.


          • Posted by dentss dunnigan on September 30, 2016 at 2:48 pm

            It is my understand that funds do get raided from some “dedicated “sources that are not constitutionally guaranteed …NJ turnpike,clean air funds ,tobacco settlement funds but if a source of money is taken from from a constitutional guarantee source their is a poison pill clause that says that source will end that tax .Hence no more raids on the Hotel tax and unemployment funds and income tax ,because they are guaranteed….perhaps we should do this with all taxes . If you remember a while back the legislature wanted to raise the millionaires tax with the extra going to fund the pensions once it was pointed out that money must still go to education it was dropped …..


          • Posted by Anonymous on September 30, 2016 at 5:09 pm

            Actually, indirectly, TPAf is educated related.


        • Posted by boscoe on October 1, 2016 at 11:35 pm

          Dentss, you’re wrong on two counts. First, the receipts from the NJ Gross Income Tax are dedicated to “property tax relief,” not education. They pay for anything that can be determined would have to be paid out of property taxes in the absence of the state subsidizing the costs. Thus, income tax receipts pay for municipal aid, some police aid, even some welfare aid. Second, the current state budget contains $3.25 billion dollars for TPAF directly or TPAF-related payments, such as the employer’s share of Social Security taxes, post-retirement health benefits, and even (wait for this) debt service on the Pension Obligation Bonds issued by Whitman in 1997.


  3. Posted by Eric on September 30, 2016 at 10:51 am

    The fix is already in so to say. The NJSC ruled against retirees cost of living adjustments, and all of the prevailing law in the state, in consideration for the judicial retirement system to be saved at the expense of all other pension plans. I have been told this by many judges in NJ. They are happy to benefit from the stench.
    Are you surprised?
    The corruption in NJ has no limitation.
    There is nothing like an independent judiciary in the Banana Republic of NJ!


  4. Posted by PS Drone on September 30, 2016 at 6:08 pm

    I see a lot of high end real estate around me for sale and the prices keep dropping as the sellers get more and more anxious to get out. My presumption is that most non-public sector NJ citizens with anything approaching significant assets (and half a brain) are looking to flee this stinking and sinking ship like rats. I can see NJ soon consisting of FSA and public sector drones wondering where all the money went. Couldn’t happen to a more deserving group.


    • Posted by Anonymous on September 30, 2016 at 10:11 pm

      A couple of takeaways; no surprise anti-publics like yourself live near “high end” real estate and those with “half a brain” are the ones voting for Trump so good luck with that.
      It begs the question, so what are you doing here?


      • Posted by PS Drone on September 30, 2016 at 11:40 pm

        Good question. By the time I drum up enough moxie to actually sell, no one in their right mind will want to buy in this god forsaken State.


        • Posted by Anonymous on October 1, 2016 at 9:47 am

          Hmm opportunity squandered, sounds like a microcosm of NJ’s govt at work – funny isn’t it….


  5. I guess the past infrastructure investment hole is more in the news today.

    Don’t forget the straight financial debt hole.


  6. Posted by George on September 30, 2016 at 11:06 pm

    From the first page of the reports: Assets dropped from 79 billion to 73 billion June 30, year over year. 73 billion /6 billion per year is 12 years or 2028, except pension payments will increase. A recession is almost certain within the next 12 years, and who knows about increased payments into the system.

    From the last page of the reports, which I don’t quite understand. A 750 million dollars more in pension fund units were purchased. While $400 millon more units were withdrawn than 2015.

    Click to access JuneInvestingReport2016.pdf

    Click to access June2015.pdf


  7. […] Jersey announced their pension-hole numbers a month ago but how do they stack up against other […]


  8. […] $8.8 billion in contributions over 8 years is far less than the $11 billion being paid out ANNUALLY right now. Under Christie (and due in part to revised GASB rules) the system’s official unfunded liability rose from $43.8 billion as of 6/30/09 to $135.7 billion as of 6/30/15. […]


Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: