You might have your own but based on this spreadsheet, created by pulling off pertinent valuation data from each of the July 1, 2016 actuarial reports for the New Jersey retirement system (with tabs for similar data going back to 2015, 2012 and 2000), here are mine:
$96,834,702,863: Value of benefits payable to retirees
$76,924,788,947: Market value of assets
Even considering the:
- phony assumptions used to value liabilities*,
- reported asset values down to $71 billion,
- which includes about $25 billion in self-valued ‘alternative’ investments:
you come up $20 BILLION short of covering the the undervalued benefits for current retirees ALONE.
439,172 public employees have nothing in their pensions but IOUs and their $1.98 billion in annual contributions (and roughly $30 billion in accrued contributions) are going into a black hole that no politician is about to plug.
* The accrued liabilities are based on an interest rate of 7.65% this year (down from 7.9%) so the annuity factors are slightly higher but far below the honest interest rate that should be used for a fund with this type of massive unfunded liability and liquidity needs. And that $49 billion headline number – that’s only the state portion. There is another $17 billion that the localities are ‘responsible’ for officially.