Muoio the Same for NJ Pensions

Acting New Jersey Treasurer Elizabeth Maher Muoio, a lawyer and politician, made news by raising the funding interest rate for the worst-funded state pension system. She defended the action to Michael Aron:
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With no relevant financial experience in general, and certainly nothing with pensions, we get inanities like this….


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There happen to be thousands of public pension plans. The 129 may refer to a Milliman study that looked at the largest public plans and had this to say on interest rates:

Interest rates have continued to move lower each year, with a median of 7.50% and a spread from 6.50% to 8.50%…However, GASB 67/68 requires that the discount rate be adjusted downward in situations where current contribution policy is projected to result in a plan running out of plan assets (using the GASB-mandated projection methodology). Such a downward adjustment occurs for 11 of the plans in the study.

And among those 11 plans:

New Jersey with the worst funded pension system in the nation should logically (as explained here) have the lowest funding interest rate though that concept is (conveniently) beyond the ken of this new crop of fiscal tyros.

10 responses to this post.

  1. Posted by Tough Love on March 17, 2018 at 9:17 pm

    One would think that a CPA would be the more appropriate background for the position of Treasurer, than ……..”a lawyer and politician”.

    Reply

  2. Posted by skip3house on March 17, 2018 at 9:27 pm

    Having faith in religions by many is reality. Faith here could be described as ‘magic’. Like that old story of a politician looking for an accounting job…to the question of how much is two plus three, the political reply is ‘How much do you want it to be?’

    Reply

    • Posted by Tough Love on March 17, 2018 at 9:38 pm

      Although having a Law degree, Ms Muoio appears to have no work history other than in “politics”.

      My first reaction was ………… Is that what NJ really wants or needs? But than I remembered that our new Gov Murphy has what most would consider a glorious Private Sector work history ……….. and it looks like he’s about to bury NJ in a great deal of additional debt or taxes.

      Looks like we NJ’s Taxpayers can’t win either way.

      Reply

      • Posted by Anonymous on March 17, 2018 at 11:11 pm

        Like I said tL, political hacks. Most of these folks have no experience and are just cronies of the ruling class. Be it dem or gop. State, federal, county or local. It is all the same.

        Reply

        • Posted by Tough Love on March 17, 2018 at 11:41 pm

          Yup, and then your Union and these “Hacks” agree to trade Union campaign contributions and their member’s Bloc-voting election support for favorable votes on Public Sector pay, pensions, & benefits.

          WAY past time for a pension/benefit rollback

          Reply

          • Posted by Retired police on March 18, 2018 at 12:32 am

            tough love!

            I believe it’s WAY past time for your wages and or retirement to be cut by at least half. By the way, what do you do for a living? lets have a answer since you’re continually complaining.
            I list my profession, I’m not ashamed, however, I come strait forward and don’t hide behind a keyboard. You’re certainly not the type to get their hands dirty
            literally, perhaps a bank teller or a used car salesman, am I getting close?
            Your demeanor tells of a bitter selfish little weasel that hates policeman because
            they never could pass the rigorous testing, training and background investigations to become one. So they hate and demean. Tell us what ignominious work you do, or shut up.

          • Posted by Anonymous on March 18, 2018 at 1:19 am

            Yea fool. Like our PBA has any say in who gets appointed to these plum positions.

          • Posted by Tough Love on March 18, 2018 at 1:32 am

            I can see that those “Best and Brightest” NJ Taxpayers pay so much for are out in force tonight.

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