N.J. residents owe $15K per person in pension debt. Compromise is the only fix.
But looking at it another way:
Nine million NJ residents may owe $15K each to pay off a $135 billion pension debt but it could also mean that the almost eight hundred thousand public employees who are owed that $135 billion will not ever get that money, which translates into them losing about $170K each.
The latter scenario is far more likely when you consider:
- That $135 billion amount is only going up as substantial benefit accruals continue notwithstanding faux reforms
- Investment returns are no panacea in a plan so severely underfunded with significant liquidity requirements
- Trump, Bridgegate, Tax Fairness, and whatever else pops up to distract from real work
Nothing will happen until such time (2022 for judges) as there is no money to pay benefits and when we get to that point we will either see:
- people with the highest tax burden in the nation getting their taxes raised 30% on average by whatever machinations bubble up from the NJ political cauldron of bad ideas, or
- benefits not being paid.