NJ Pension as Ponzi Scheme

Sweeney isn’t fooling the unions:
.

.
Yes comparing the New Jersey retirement system to Social Security is appropriate as money going in from new younger public employees is effectively paying retirees* but maintaining this ponzi scheme on the state level is problematic since:

  1. the closest New Jersey can come to printing money is raising taxes without repercussion in one-party localities (which seem to cover 90% of the state), and
  2. even with money coming in from new younger workers Social Security is going broke.

Full NJTV story:
.

.

.

.

* Something that may be news to CWA members joining this ponzi scheme.

7 responses to this post.

  1. Posted by Tough Love on April 30, 2019 at 11:54 pm

    SS, even w/o any saleable assets (i.e., SS is completely unfunded) SS is projected to be able to continue paying 75 of current formula benefits FOREVER, just via a continuation of current formula contributions inflows (from employees and employers).

    That’s a LOT higher better than the prospects for NJ’s Public Sector pensions (currently with an overall funding ratio in the low 30s%).

    Reply

    • Posted by Anonymous on May 1, 2019 at 6:53 am

      Yea. You tell us. How about if folks are still getting their pensions in 5 years, you put a sock in it. Blowhard cheapskate guy….couldn’t get a teaching job huh?

      Reply

      • Posted by Anonymous on May 1, 2019 at 6:55 am

        May first. Another TPAF pension check in my checking account. I did 40 years and left at 63. I paid enough in, blowhard. You must be a man who thinks edu-a-ma-cation is for wimps.

        Reply

        • Posted by Tough Love on May 1, 2019 at 8:15 am

          Given your above 2 comments, the readers can judge for themselves WHO the “blowhard” is.

          Reply

        • Posted by geo8rge on May 1, 2019 at 10:27 am

          “I paid enough in, blowhard. ” The problem is that 20 years ago some NJ taxpayer now living in Florida didn’t pay in.

          Reply

          • Posted by Tough Love on May 1, 2019 at 8:29 pm

            I’d bet that that taxpayer (combined with all others) DID contribute enough to fully fund a pension in an amount EQUAL to the retirement security (now mostly via 401k Plans) provided by Private Sector employer contributions to their workers retirement security. Just because the Public Sector Unions were so successful in getting these excessive pensions by BUYING our Legislators favorable votes (on Public Sector pay, pensions, and benefits) with threats and BRIBES disguised as campaign contributions, doesn’t legitimize them. ….. nor will likely prevent the Taxpayers from reneging on these absurd “promises” when Plan assets run out.

            You see, the ROOT CAUSE of NJ’s Public Sector pension mess has always been excessively generous pensions, and the lack of fully funding is not the “CAUSE” of the problem, but a “CONSEQUENCE” to that real root cause.

            Reply

  2. Posted by geo8rge on May 1, 2019 at 7:30 am

    “the closest New Jersey can come to printing money is raising taxes without repercussion”

    If I remember things right, supreme court decisions from the wild early days of the republic, give states the ability to print money.

    If I remember right, when California had its budgetary crisis the state paid contractors with state debt, that could be used to pay other taxes, in effect they created for a short period a state currency. State contractors and employees might not like it but most probably would not quit. Have you heard of any state contractors moving to Charlotte NC?

    Legend has it that in colonial NJ Trenton only permitted a single bank to make loans. The excess interest rates from this bank meant that Trenton did not need to collect any other taxes.

    In other news of the absurd:

    Petition to Recall New Jersey Governor Phil Murphy Approved by State
    http://shorenewsnetwork.com/2019/03/30/petition-to-recall-new-jersey-governor-phil-murphy-approved-by-state/

    They’ve got 30,000 of the 1.4 million needed.
    https://www.change.org/p/citizens-of-nj-recall-governor-murphy

    Reply

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: