JRS Experience Study

The Judicial Retirement System (JRS) is projected to be the first of New Jersey’s public pension plans to run out of money on paper. Yet, we have a law requiring the preparation of an  Actuarial Experience Study for July 1, 2014 through June 30, 2018 for the plan which was dated January 17, 2020 but just hit the state website yesterday.

Here is what I got out of it:

  1. Title 43, Chapter 6A-31 of the NJ State Statute is another example of innumerate lawmakers, ignorant of what they should be looking for, requiring that whatever they are told include a lot of pictures of little relevance so as to avoid action.
  2. Cheiron does not mention the discount rate since that most important actuarial assumption is chosen by those aforementioned innumerate lawmakers.
  3. No mention of where this plan is headed in two years and what should be done about it:

 

3 responses to this post.

  1. Posted by A on July 9, 2020 at 2:08 pm

    As I understand, JRS is small enough (and powerful enough) to continue pension payments on pay-as-you-go. If so, will that set a precedent?

    Reply

  2. Posted by A on July 9, 2020 at 2:12 pm

    “Cheiron does not mention the discount rate…”

    Most people on this board are well aware of the discount rate.

    Is that set to become major headlines in 2021?

    Reply

  3. Posted by A on July 9, 2020 at 2:18 pm

    Wow!

    Reply

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