Sad State of NJ Pension Coverage

Their second program aired today and, to their credit, the pension question was put to the two gubernatorial candidates who guested. However, all we got as an answer was the disquieting conclusion that both are clueless as to the real breadth and depth of the problem, a primary component of which includes the willful naiveté of those debating for solutions. For example, this absurdly inane comment:
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Perhaps Wisniewski means that most actuaries in the employ of New Jersey would sign off on defining 70% as full funding so that mini-contributions can continue but, per the American Academy of Actuaries, that there is even one actuary who will back up Wisniewski’s canard without substantial remuneration is a myth.

John Wisniewski (D) lowering the bar:
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Jack Ciattarelli (R) recites his website page:
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Of course a Cash Balance IS a Defined Benefit Plan and 401(k)s could even provide for higher benefits especially for younger participants.

16 responses to this post.

  1. Posted by Anonymous on March 19, 2017 at 1:18 pm

    Ronald Reagan proved that an actor makes a better politician than a politician makes an actor!

    Reply

  2. Posted by steve on March 19, 2017 at 1:41 pm

    Sounds like ‘ please pay up and die young ‘—the only thing written in stone will be your grave marker—— or just keep kicking the can down the road—–some solutions?!?!–I guess the party is over for the higher than private sector paid muni jobs–the other not mentioned solution (already in progress} is to hand the jobs over to their relatives when they retire

    Reply

  3. Posted by Anonymous on March 19, 2017 at 8:18 pm

    Voters generally think they know what they want until they get what they asked for and then everything changes. Since we seem to be on the topic of how intertwined acting and politics are I think it fair to say ‘we can’t handle the truth!

    Reply

  4. Posted by MJ on March 20, 2017 at 8:15 am

    Jack C. seemed to make the most sense out of the situation……..Abudato talked about post retirement health benefits being a contract……is this a contract or I thought I had read that health benefits and contributions can be altered

    Anybody know for sure? What do retired publics pay for retirement health care and Medicaid?

    Reply

  5. Posted by George on March 20, 2017 at 11:30 am

    UC paper argues full pension funding not needed
    https://calpensions.com/2017/03/20/uc-paper-argues-full-pension-funding-not-needed/

    A cautionary example of extreme full funding is a federal law in 2006 requiring the U.S. Postal Service to estimate pension and retiree health care liabilities 75 years in advance. By 2015 the USPS had put aside $335 billion and was 83 percent funded over 75 years.

    But building a “breathtaking” retirement fund resulted in major operating losses, said the paper, that “shorted new capital investment and service expansions and left the service open to persistent charges that it is an an obsolete money-loser.”

    Reply

    • Posted by Anonymous on March 21, 2017 at 6:07 am

      Thanks for the info, any similar data on all Fed pensions that reflects their ‘unfunded’ P&B liability? Are they pay as you go, including military?

      Reply

      • Posted by George on March 21, 2017 at 3:24 pm

        As far as I know federal pensions and SS are unfunded. SS, a federal program, has federal IOUs, which some say is not possible and an accounting gimmick. USPS has a funded pension plan.

        Reply

        • Posted by Anonymous on March 21, 2017 at 3:35 pm

          Wow what a hidden never talked about cost to Fed taxpayers’ and/or economy when Feds just print more money!

          Reply

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