Part-Timers With Pensions – Still?

Tier 5 was supposed to exclude part-time employees hired on or after June 28, 2011 from the pension system.  But a review of active employees in the New Jersey retirement system as of September 30, 2016, as taken from the state’s YourMoney website, lists 391,283 people of whom 75,485 are Tier 5.  Removing recently hired employees for whom a full year’s salary does not seem to be reported we get 62,770 Tier 5 employees hired by 9/1/15 of whom 203 made under $10,000 and 56 made under $5,000.

tier5

How did these people get 32 hours a week in a state with an $8.38 minimum hourly wage?

5 responses to this post.

  1. Posted by Anonymous on January 6, 2017 at 6:03 pm

    So it seems to be clear NJ’s pension funds have the highest unfunded liability in the country. Are salaries and P&B that much more generous than other governments’? Are the inept Politicians and Unions that bad at doing their jobs? Clearly the other side of the equation, funding, has played a significant role in NJ’s pension free fall!

    Reply

  2. Posted by S Moderation Douglas on January 6, 2017 at 7:04 pm

    Are salaries and P&B that much more generous than other governments’?

    Not

    even

    close.

    “DON’T PAY THE BILLS, THE DEBT GETS LARGER”

    Mary Pat Campbell

    “I’ll give it away at the beginning: they’re in trouble because they’re not making the “required” contributions to the pensions.

    Yes, there are all sorts of other reasons as well, such as spiking, early retirements, sluggish payroll growth, optimistic valuation assumptions, etc.

    But ultimately the reason the pensions are so little funded is because the state didn’t put in enough funds.

    And they knew it.

    They knew it for years.”

    Reply

  3. Posted by Mike on January 6, 2017 at 9:04 pm

    Odd that of the 33 or so people you list, the great majority appear to be Teachers. I wonder if that is true of the entire set of 56 making under $5,000, or of the 203 who make under $10,000.

    I ask because I think that group is the people where the employer pays for salary, but has no responsibility for Pension or Retiree Health. Such an employer might see no harm in helping these people obtain higher benefits from “the system.” I guess I’m suggesting fraud of some sort is possible – reporting more hours at a lower hourly rate, to assure that the person gets pension credit.

    BTW, who was it that wanted Tier 4 and Tier 5 to have “no minimum salary requirements?” How long has this fix been in place?

    Reply

    • Interesting idea but probably wrong. Did another spreadsheet:
      https://burypensions.files.wordpress.com/2017/01/njact-tier5.xlsx

      Tier 5 employees hired by 9/1/15. It looks like most low-paid are in PERS even those listing as Bd of Eds as employers. Not sure how that works since TPAF pensions are supposed to be paid by the state but if Board of Ed people are not in PERS then who pays the Employer portion? Also, it looks like these are all PERS and TPAF – no Tier 5 for PFRS.

      The spreadsheet also has a workbook of General Assembly, Senate and Governor’s office people. Some of the low have other jobs. Other Lowest paid:
      ALLEN IAN 1988 6/29/2013 SENATE 96 STATEWIDE 2 PUBLIC EMPLOYEES’ RETIREMENT SYSTEM 36 $15,000 $15,000 5
      HAGEMAN BARBARA 1958 5/31/2014 GENERAL ASSEMBLY 96 STATEWIDE 2 PUBLIC EMPLOYEES’ RETIREMENT SYSTEM 28 $15,435 $15,435 5
      MOORE JOSE 1955 1/11/2014 GENERAL ASSEMBLY 96 STATEWIDE 2 PUBLIC EMPLOYEES’ RETIREMENT SYSTEM 30 $16,905 $16,905 5

      Reply

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