NJ To Make “Full” Pension Payment

The WSJ is reporting:

New Jersey Gov. Phil Murphy is expected to propose making a full payment to the state’s chronically underfunded pension system for the first time since 1996, a sign that the blow from the pandemic to all states’ finances isn’t as brutal as officials originally feared. Mr. Murphy, a Democrat, will call for a $6.4 billion payment to the pension system in his budget address Tuesday, senior members of his administration said. The Murphy administration has been ramping up pension payments and originally intended on making a payment of $5.76 billion for the fiscal year that begins in July.

That $6.4 billion is what the actuaries hired by New Jersey for the specific purpose of providing absurdly low contribution amounts came out with for the 7/1/21 to 6/30/22 plan year. It includes a massive amortization portion to make up for decades of absurdly low contribution amounts (some of which were not even deposited). In addition.

  • Apparently it’s only an extra $640 thousand to abandon the legislated ramp-up and buy headlines to impress the unenlightened.
  • Even with the state contribution there will be negative cash flow as the $12 billion being paid out will still be more than that $6.4 billion state contribution plus the $4 billion in combined contributions from localities and employees.
  • Most of that state money will be borrowed as Murphy is sure to use the blank check the NJ Supreme Court gave him to force future New Jersey taxpayers to repay another $5 billion in bonds that will be sold to make the pension contribution.

24 responses to this post.

  1. Posted by Tough Love on February 22, 2021 at 7:58 pm

    Unbelievable ……………… He BORROWED the money (on the Taxpayer’s backs) to fully fund these ludicrously excessive Public Sector pensions.

    Borrowing should ONLY be used for CAPITAL expenses (bridges, school construction etc,), NEVER for operational expenses.

    Gov. Murphy pandering to HIS “base” ………….. NJ Teachers.

    Reply

    • I don’t disagree about the borrowing and the group that he panders to being the teachers.
      I of course, am happy that he signed S5 into law along with unanimous support from the legislators. Both GOP and dem. But I am truly disappointed in Gurbir Grewal. When he was the bergen county prosecutor, he was somewhat supportive of the police. However, since moving to the State AG position he hasn’t been. He has instituted many policies that have made it harder and less safe to do our jobs. As a result, citizens of this state will be less safe. We’ve talked about this,— the early warning system including things like at fault MV crashes, etc. not being able to control a violently resisting suspect with a knee to the back momentarily, and many other things like today’s action. It totally discourages officers from taking active steps to enforce the law for fear of being sued or criminally charged. Better to sit back and handle calls for service. Sad really. Look at NYC, Seattle, Portland, Minneapolis etc. these places have experienced severe crime waves. The subways here in nyc are death zones. Never had that before last year. Oh well. There’s always the 2nd amendment (for now) and of course my pension.

      Reply

    • Posted by Anonymous on February 22, 2021 at 9:52 pm

      TL get out before it’s too late. You would look good in Texas

      Reply

      • Posted by Tough Love on February 22, 2021 at 11:01 pm

        Been there …………… to hot and WAY too humid.

        And sorry, I don’t like your State’s electric rates.

        Reply

    • Posted by Anonymous on February 28, 2021 at 2:55 pm

      The tax revenue from weed will support nuts budget.

      Reply

  2. […] Posted on February 23, 2021 by Mary Pat Campbell NJ To Make “Full” Pension Payment […]

    Reply

    • Posted by PS Drone on February 22, 2021 at 10:02 pm

      What a typical NJ flim-flam. Borrow because of the Pandemic, and then slip the borrowed proceeds into the teachers’ pension fund. Murphy may be from Massachusetts, but he has learned the NJ way very well.

      Reply

  3. Hmmmmmm are these all Democrat run cities that E mentions?? and if so, what the heck is going on :):)

    If Murphy is really going to do that I wonder if there will be some sort of give back on the other end like a behind closed door deal?

    Reply

  4. https://www.nj.com/marijuana/2021/02/compromise-weed-and-drinking-penalties-bill-passes-minutes-before-murphys-legal-marijuana-deadline.html

    Read this article. Senator Singer is absolutely right. Groups of kids in the early teens can now smoke weed or drink with no fear whatsoever down the shore or otherwise. They won’t care about a warning and the police aren’t going to risk being criminally charged. You can’t even call their parents for a first offense. Beyond stupid. These family shore towns will get hit the hardest. The whole shire will be like Seaside Heights lol. Glad I bought in PA.

    Reply

  5. […] John Bury on the pension payment: “That $6.4 billion is what the actuaries hired by New Jersey for the specific purpose of providing absurdly low contribution amounts came out with for the 7/1/21 to 6/30/22 plan year. It includes a massive amortization portion to make up for decades of absurdly low contribution amounts (some of which were not even deposited).” […]

    Reply

  6. Posted by PS Drone on February 23, 2021 at 10:26 pm

    Off topic. Another goody from the left/progressive “wishful thinking” handbook – a guaranteed federal job:

    By ensuring everyone has access to a good job [Doing What?] with dignified wages, safe working conditions, health care and other benefits—including full worker rights and union protections—a federal job guarantee would address the current jobs crisis while laying the foundation for an equitable economic recovery. It would also set a new standard for quality jobs, pressuring low-wage employers to increase wages and benefits. It would create a pathway to stable employment and begin to close the gaping income and wealth gap for Black, Latinx, and Indigenous workers who continue to face discrimination and are often the “first ones fired, last ones hired” during economic crises. It would also ensure economic inclusion for those experiencing discrimination in the labor market, including people with disabilities, transgender people, caregivers, and people with criminal records or involvement with the criminal legal system. By hiring workers in the midst of a downturn [With What Money?], a permanent job guarantee would operate as an automatic stabilizer, maintaining consumer spending and protecting us from prolonged recessions and jobless recoveries — making the economy more resilient as well as more inclusive.

    This from the idiots who have been elected to represent and govern us. We are doomed.

    Reply

    • Posted by Tough Love on February 23, 2021 at 11:48 pm

      Here’s a link …………

      https://www.boston.com/news/politics/2021/02/23/ayanna-pressley-federal-jobs-guarantee

      Quoting from that article as to it’s cost ……..

      ” However, a 2018 study estimated that a federal jobs program would cost between $655 billion and $2.1 trillion a year, depending on the uptake rate.”
      ——————

      We’re gonna need a bigger printing press !

      Reply

      • No. The idea is take from white males and females (but mostly males, unless your a Karen!!!!!) and redistribute to BIPOC folks. No printing press needed. Just take from the privileged evil white man. Even if he is broke himself. He is still evil and a colonizer.

        Reply

        • And by the way TL—-you indirectly supported this crap by knowingly voting for someone who you knew would pander to this group. You and many many other white women who were disgusted by Trump.

          Reply

          • And stop throwing the cops in the same boat with these folks. We’re not.
            Hell we can’t even ASK a under 21 year old to consent to a search. Read the new law. It states that they are to immature to comprehend that decision. Really? A 20 year old ADULT!!! Please.
            I NEVER ask anyone to search them. If I have the authority to do so I just do it.
            Like I told my daughters. If a cop ASKS you to search you car/person bags etc. he legally can’t without your permission, and the correct answer is to say NO, unless you are absolutely sure you have nothing and you just want to quickly get out there etc. , the correct answer is no. If the cop has the authority to search you, he WILL NOT ask your permission, he will just tell you he is doing it and then do it.
            We are certainly not your average public worker/teacher. Our views mean much more heavily to the right. (Except for fatso, he is a bigger asshole than Murphy)

            Reply

          • Posted by Tough Love on February 24, 2021 at 10:20 am

            Yup, I’m still “disgusted” by Trump.

            They take away the assets of people like Madoff and Epstein and distribute them to the victims.

            I believe that Trump’s grossly negligent (and clearly POLITICALLY MOTIVATED) lack of action re COVID resulted in MANY of the 500,000 Covid-related deaths.

            His entire net worth deserves to be taken and distributed to his victims.

            Reply

          • Posted by Tough Love on February 24, 2021 at 11:16 am

            Quoting .,……………

            “We are certainly not your average public worker/teacher. Our views mean much more heavily to the right. (Except for fatso, he is a bigger asshole than Murphy)”

            Interesting how leaning to “the Right” is great ,,,,,,,,, UNLESS they put in place REAL (yes REAL) taxpayers saving ….. the COLA Pension suspension.

            Self-interest RULES !

            Reply

          • Yes. That’s correct. As you would also hate anyone including me if I came after the way you support your family. Or is money no object in your household?

            Reply

          • Posted by Tough Love on February 24, 2021 at 2:13 pm

            E,

            The BIG difference is that Public Sector pensions & benefits (especially those granted Safety workers) are undeniably excessive (under any reasonable metric), unjustifiable, and grossly unfair to Taxpayers responsible for paying for almost ALL of it.

            Reply

          • As always we agree to disagree. But are you telling me that if I thought you were over compensated that you would defer to me and give up some of your compensation simply because that was my opinion? Or would you tell me to go F myself?
            You seem to think that I should somehow tell my wife and kids that TL thinks I don’t deserve my income so I will happily take less. Lol. What a preposterous request that would be. So essentially there is no difference.

            Reply

          • Posted by Tough Love on February 24, 2021 at 7:13 pm

            Quoting …………

            “But are you telling me that if I thought you were over compensated that you would defer to me and give up some of your compensation simply because that was my opinion? ”

            Sorry, but given that I work in a non-Union Private Sector job, I have VERY little “negotiating power” over my compensation ……. and ZERO sway over whether my bosses get to keep their jobs if they don’t acquiesce to my demands for “more”. Given that, my compensation is “arms-length-determined” (no-sway, no-control) there is every reason to believe that it is consistent with my value-contribution to my employer.

            Go ahead, try convincing the readers that the same is true for Public Sector workers ……….. given the in-your-face underhanded deal-making between the Public Sector Unions and our self-interested, contribution-soliciting, favorable-vote-selling, taxpayer-betraying Elected Officials.
            ———————————-

            And I’m not ASKING you to voluntarily give up part of your compensation. Given the underhanded way that your excessive compensation has been granted, such FUTURE-Service compensation-reductions should be FORCED upon Public Sector workers.

            Reply

          • Lol. But they won’t be forced. Not for cops anyway.
            You’ll just have to keep digging deep.

            Reply

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