NJ Retiree Update – June, 2019

Based on state pension data updated through June, 2018 there were 335,940 retirees getting annualized pensions of $10,928,305,817.

The June, 2019 numbers just came online and there was a substantial jump.

Through June, 2019 there were 342,365 retirees getting annualized pensions of $11,286,481,502.

In the last year there were 13,925 new retirees with total annual pensions of $522,475,463. Of those there were 381 who, in the last year, started with a pension of over $100,000. Overall the $100,000 club has 3,467 members getting a total of $393,212,323 annually.

 

34 responses to this post.

  1. Posted by skip3house on July 26, 2019 at 12:33 pm

    Seems to give a solution of big cuts to those over $40K…..

    Reply

    • Posted by NJ2AZ on July 26, 2019 at 2:10 pm

      if they cut everyone above $40k to $40k they would be close to fully funded

      Reply

      • Posted by E on July 26, 2019 at 3:06 pm

        The path to progress will cap new hire non safety pensions at roughly $18000 or so a year. $40000 is the max salary used for pensions, and the formula of unchanged would bring about 45% of that number to the retiree. The min age is also boosted to 67. Therefore the earliest that someone will be able to retire as a new hire will be in the 2050s. A young person in their 20s will not even think about staying that long just to make that partly amount. In the 2050s and 60s that would be like getting $5000 a year now. Lol. Peanuts. For all intents and purposes the pension plan will be closed to new hires. What will teaching be like? Dunno. My kids will be done with public schools in 2022. Just like they did with the superintendents and jersey city PD et al…you may see them need to offer considerably higher salaries to get folks to take and keep the job. Summers off is nice, but if u can’t pay the mortgage….
        You will see towns like mine pay big bucks to get talent (like they do now for the supers). However, with the $$ saved on the pensions it’ll all come out in the wash.
        For me, life’s good. At the tail end of a nice career in suburbia. Nice town to work for, I live in a town with very good schools and my house is worth almost 3x what I paid for it. And I’ve been blessed with good health and 2 healthy kids. Not everyone has the last part. I wish good will and blessings to almost everyone on here….ah what the hell, also to TL. Lol.
        You shack up w Stanley yet? Outside of his denial of climate change, you guys make a cute couple.

        Reply

        • Posted by Tough Love on July 26, 2019 at 4:32 pm

          Quoting ……………

          ” In the 2050s and 60s that would be like getting $5000 a year now.”

          For someone who tries to come across as having some smarts, sometimes you sound like a nitwit. Do you really believe that the $40,000 cap won’t increase (perhaps on a ad-hoc basis with inflation) for 30-40 years?

          Really ???

          Reply

          • Posted by E on July 26, 2019 at 4:39 pm

            I’d bet against it increasing. The whole point is to end the pensions. The focus will be on any DC contribution. The health insurance contribution chart with all the percentage of premium being based on your salary hasn’t increased since 2011 and there is absolutely zero talk of. As salaries increase, more and more folks will be at the top rate. The 35%. The $110,000 top tier has not been increased with inflation levels. Not that I have to worry once I retire in 1-6 years. (Wink wink)
            There will be little push to increase that $40,000 limit.
            What maybe it’ll be $50,000 in 30 years? Whoop de do.

          • Posted by Tough Love on July 26, 2019 at 5:58 pm

            Quoting ……………

            “I’d bet against it increasing. ”

            Then you are either a nitwit or a charlatan looking for an issue (that likely DOES NOT EXIST) to complain about.
            —————————

            Quoting ………………

            “The health insurance contribution chart with all the percentage of premium being based on your salary hasn’t increased since 2011 and there is absolutely zero talk of. As salaries increase, more and more folks will be at the top rate. The 35%. The $110,000 top tier has not been increased with inflation levels.”

            Big Whoop, you guys STILL get a FAR FAR better deal on healthcare than comparable Private Sector workers get. ………… WAY WAY richer benefits, and for most, far lower contributions.

          • Posted by E on July 26, 2019 at 6:53 pm

            Whose complaining? I won’t be affected by it. I’m just stating that if I was a betting man there will be NO increase to the $40,000. Instead salaries will be increased, in some cases by a lot to attract good teachers. Just like any other company that has forgone pensions in the 21st century. Or 20th for that matter.

          • Posted by E on July 26, 2019 at 6:57 pm

            Interesting that you call me a nitwit on this one. Like a said, you’re a contrarian with me. You consistently state that “grinning ear to ear when your pension is cut” etc Can’t afford it, etc.
            but they you go on to say the $40,000 will be increased.
            I don’t see it. You just like to pick fights w me. Even when it appears I am right.

        • Posted by geo8rge on July 26, 2019 at 8:38 pm

          “The path to progress will cap new hire non safety pensions at ”

          I thought the point was salaries would be higher, pension promises smaller.

          What pension reform types don’t get is to retain and attract employees you have to pay them properly. Salaries might be larger under pension reform.

          Reply

          • Posted by Tough Love on July 26, 2019 at 9:10 pm

            Paying higher salaries is fine (vs deferred pension & retiree healthcare promises).

            Why, because you can’t phony-up the cost of salaries while it’s easy and routine to understate the true cost of DEFERRED pension & benefits. Salaries will naturally be constrained by the need to ANNUALLY balance their cost with the Taxpayers ability to pay, while there are few (if any) restraints on promising UNAFFOEDABLE pension s& benefits.

      • Who gets the credit…you/me/pols/none…….? lol

        Reply

      • Posted by PS Drone on July 26, 2019 at 3:59 pm

        All plans need to a) immediately defer benefit payment date commencement to age 66 and b) claw back all benefits paid in excess of $60K per annum (total for double and triple dippers) from retirees. Those two things would balance assets with liabilities.

        Reply

        • Posted by Tough Love on July 26, 2019 at 4:36 pm

          And reduce ALL retiree healthcare subsidies to what the lucky “some” in the Private Sector still get from their employers ….. a few $100/year into an HSA..

          Taxpayers are FED-UP with being the sucker holding the bag !

          Reply

          • Posted by E on July 26, 2019 at 4:42 pm

            And yet you are one of only a handful that are on here. The push isn’t there like it was 10 years. Path to progress will be the end of it.

        • Posted by E on July 26, 2019 at 4:40 pm

          Uh,no thanks. PS. I’ll stay with what I got. Pfrs will be fine.

          Reply

          • Posted by stanley on July 27, 2019 at 8:24 am

            You mark my words, Constable, your day of reckoning is on the way. Pfrs won’t be fine. You’ll be sucking the hind one. Get some canned goods and long shelf life consumables. Maybe some extra ammo. Camping gear can come in handy. Dental floss makes good sutures, so I”m told. If you’re a big steak eater, you might want to stock up on Nitroglycerin tablets. Be prepared, buddy. Those Kennedy half dollars might be good to have around some day? Visit your local Mormon store.

          • Posted by E on July 27, 2019 at 8:39 am

            Omg. Are you for real? You gotta get laid my friend. You’re delusional. I have saved for a rainy day AND I got plenty of ammo. You need not worry.
            “Mark my word….”. Yea ok.
            If your doomsday scenario ever came to pass, your half dollars would get u nothing. Lead would be the commodity of the future. Ain’t gonna happen.

  2. Posted by geo8rge on July 26, 2019 at 4:14 pm

    “342,365 retirees getting annualized pensions of $11,286,481,502.”
    “$100,000 club has 3,467 members getting a total of $393,212,323 annually.”

    So if you cut every retiree getting over $100k to $0 you would save $393,212,323/$11,286,481,502 = 3.5%

    The distribution of pensions might also be important. It is possible ‘poverty’ pensions of less than say $20,000/year prove to be uncuttable as you will just end up putting them into other government programs. For example, in PR is seems that it was impossible to cut pensions less than $12k per year. I am guessing uncuttable would start at $20k in NJ.

    Sweeney might be concentrating on health care because it will be possible to spread the a small cut over many hundreds of thousands of people including spouses and dependents.

    Reply

    • Posted by E on July 26, 2019 at 4:46 pm

      You guys read this crap and think the sky is falling. Trump will win again next year. The economy will stay hot and path to progress will slowly stabilize everything. Meantime, have a nice cold Long Island Ice tea.
      TL has devoted lots of her free time to this topic for years. Concessions were made and she still bitches. What a fraud. Shut up and pay me 🤣🤣🤣🤣🤣🤣

      Reply

      • Posted by Anonymous on July 26, 2019 at 5:32 pm

        I was just speculating as to what was possible. Cutting $100k pensions does not seem to get you much while cutting very small pensions is impossible. What does that leave? Cuts to healthcare and new employees. New employees may have options like not working for NJ or quitting.

        Reply

        • Posted by E on July 26, 2019 at 6:49 pm

          And many will choose that option. (Which is one in the same)

          Reply

        • Posted by Tough Love on July 26, 2019 at 9:05 pm

          Quoting …………..

          “Cutting $100k pensions does not seem to get you much while cutting very small pensions is impossible. What does that leave? ”

          What ?

          The basic pension “formula” and “provisions” (such as the ridiculously young ages at which pensions can being collected w/o an actuarial reduction) for EVERYONE, BOTH of which result in pension MULTIPLES greater in value upon retirement than those typically granted comparably situated Private Sector workers.

          Reply

  3. Posted by Anonymous on July 26, 2019 at 6:57 pm

    Searching…. searching… John, have you, or has anyone seen guidelines on pension reductions?

    All I have found so far is…

     “However, to be eligible for a partition, a plan must make maximum benefit suspensions as determined by Treasury. The maximum amount of benefit suspensions is subject to limits in the law:”

    No reductions are allowed for retirees age 80 and older (as of the effective date of the benefit suspension); reductions for those aged 75-80 are less than allowed for younger participants.

    No reductions are allowed to benefits based on disability (as defined under the plan).

    Any benefits above 110% of the PBGC guarantee must be reduced to 110% of the PBGC guarantee (except as noted above).
    ———————–
    We have discussed this before, as in the principle that we can’t go by benefit amount alone, because there is a big difference between a $20,000/year pension beginning at age 65, or a $20,000 pension beginning at age 55 (“full pension” with 35 years, at any age).

    Some day, pension reductions may be coming to a public plan near you. The easy way would be to reduce all pensions by “x” percent. But not necessarily “fair”. Also important to note, at least in the ones I have seen; future benefits are reduced not just for current workers, but also for those no longer working, but vested, AND for those already retired. (Except for those of us already over age 80, of course.)

    I think it was Jane the Actuary who wrote it was foolish for some (it has happened) to retire early in order to “lock in” their pensions. Usually won’t work, because if/when the money runs out, it runs out for everyone. Contrary to popular opinion, current retirees are no more or no less entitled to their “full” pensions than any other workers.

    Still searching.

    Reply

  4. Posted by Dr, Joseph Monteleone on July 26, 2019 at 7:07 pm

    if they cut everyone to $45k they would be close to fully funded. Too many recipients receiving well over $100K per year and those who receive $20K or less, this is an unrealistic disparity, especially with no COLA. Then you have the double dippers who should not be collecting a pension until they leave their current office. Cut those making
    this high amount and raise those who make $20K or less.

    Reply

  5. Posted by Anonymous on July 26, 2019 at 8:01 pm

    “…raise those who make $20K or less.”

    Some of those making $20k or less may have worked only ten years, while others worked twenty or more. It’s complicated.

    Some of those making $100k or more are already under-compensated compared to equivalent private sector workers. We are not just talking about “fair”. We are talking about the ability to attract and retain professionals and other highly educated warmers.

    Also, if they cut everyone to $45k and don’t simultaneously reform funding requirements, (full funding with conservative assumptions) they will keep sliding back into the same hole.

    Reply

    • Posted by E on July 27, 2019 at 5:44 pm

      Exactly. Well said. It is TL that is misleading us all here.
      She really thinks that in 20 of so years the $40000 will be raised significantly higher number. Maybe $50 or $60k. I don’t see it. In 20 years you will still be a at least a decade or more away from the first wave of post Path to Progress hires putting in their papers. That is an entire generation of inflation. There will be very little push to raise this number. The raises will come from base pay or possibly a slight raise in the DC component of the retirement plan. Not from the DB portion. I don’t have a crystal ball but I don’t really think I will be the “nitwit” here. As the Asia song says, only time will tell.
      Meantime. El Gaupo will be enjoying a well deserved pension of $100-$127k depending on when I get sick of all the overtime.
      TL will not be enjoying the same, and it absolutely kills her. 😃😃😃
      Hey TL, can you show this guy Stanley a good time?? I think he’s forgotten (or maybe never did learn) how to use what God gave him. Maybe then he would get over this doomsday shit. That is just a fucking excuse for, I didn’t do so well in life so I want everything to fall apart so it evens out. Nothing more. He is just like a commie. He just hides it in “the sky is falling and I’ll have my AR-15 ready.” All these hard liners, left and right, don’t really have it going on. Who else would have the time to “make a stand”. I’m to busy raising a family, to play Doomsday prep boy.

      Reply

      • Posted by E on July 27, 2019 at 5:46 pm

        But but but…..Constable!!!!! 😀

        Reply

      • Posted by Tough Love on July 27, 2019 at 8:36 pm

        Quoting ………..

        “Who else would have the time to “make a stand”. I’m to busy raising a family, to play Doomsday prep boy.”

        Then why from a prior comment, do you ………… have lots of ammo ?

        Reply

        • Posted by E on July 27, 2019 at 10:27 pm

          Um…cause I’m a cop? And I have no arsenal. A few hundred rounds is all. That’s maybe ten boxes or so. Not a lot….you can through a box at the range in a few minutes

          Reply

          • Posted by Tough Love on July 27, 2019 at 10:42 pm

            Sounds unnecessary …………. unless you too are a doomsdayer.

          • Posted by E on July 27, 2019 at 11:35 pm

            Maybe. But don’t forget, I can and usually do carry off duty (maybe not as often as I should) and practice more often than the average joe. Like I said, most gun owners probably are not to far behind. And I enjoy myself, hardly a spam (meat) expert that your boyfriend Stanley is. I truly see it as a tool I use at work. Nothing more. I’m not fascinated by guns. They don’t sexually arose me. If I wasn’t a cop I may not even own one. Who knows? And I’m certainly not stupid enough to lose on social media with one.
            You seem anti gun. That’s ok. I get that. I’m not crazy about guns. I’m truly in the middle of the gun debate.

          • Posted by E on July 27, 2019 at 11:36 pm

            *pose on social media. Although that usually does lead to a “lose” or loss. Lol

          • Posted by NJ2AZ on July 28, 2019 at 5:32 pm

            i always get a huge laugh when i hear what people in places like NY or NJ consider an arsenal 😀

            A ‘few hundred rounds’ is a short session at the range. I probably have maybe 2,000 rounds just because its cheaper to buy in bulk, and thats pretty light for people out here.

  6. […] Annual payouts are approaching $12 billion […]

    Reply

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