Leading With a Lie

Completely bankrupt of ideas on how to deal with the impending bankruptcy of the New Jersey Retirement System outgoing (finally) governor Chris Christie spit-balled an idea:

Of course it’s a dumb idea since, theoretically, lottery revenue is being spent elsewhere and will need to replaced and, as a couple of members of the ignored pension committee mentioned, it would not be nearly enough. But note the lie that led to the spiel:

Following the lead of a number of private sector pension plans one potential path to greater solvency is to make large transfers of assets into the pension fund.

Perhaps Christie is confusing the following of independent funding requirements (something New Jersey has not done in decades, if ever) with a need for large asset transfers but if he really wanted to follow the lead of private sector plans he would have:

  1. frozen benefit accruals,
  2. replaced defined benefit plans with 4011(k)s, or
  3. if all else failed, sought a bailout.

Had Christie followed those leads there may not now be the need for these Hail Marys.

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