Local NJ Pension Hikes

Annual pension contributions for 2022 from local employers in New Jersey for the PERS and PFRS plans (due to be paid April 1, 2022) finally appeared on the state website last week based on the June 30, 2020 actuarial valuations. If Kenilworth is any measure the 2022 hikes are massive for the second straight year and explains why the democrats in charge embargoed these numbers until after their elections.

4 responses to this post.

  1. Posted by boscoe on November 15, 2021 at 2:58 pm

    Two things: (1) why did you choose 2007 as your base year when it is so clearly out of trend and thus exaggerates the cumulative? (2) you might want to check your cumulative % change in your PFRS trend line. It looks to be about 100 percentage points too high. Otherwise, carry on.

    Reply

    • This was an update from prior calculations and, as I recall, prior to 2007 everybody might have been on a Whitman pension contribution holiday. It could also be a matter of 2007 being the earliest available data at the time I made up these spreadsheets.

      Percentages are what excels says they are though looking at year-over-year increases does not tell the whole story as it does not take into account changes in the underlying employee populatin. For example, Union County supposedly went from about 2,500 employees to 2,100 so you would expect their pension cost to drop next year unless the remaining employees got massive raises (which the top guys did get including an 18.8% raise for the County Manager but no need to drag you into these sordid affairs going on in UC).

      Reply

  2. Posted by Stephen Douglas on November 17, 2021 at 3:25 pm

    This is the hike in pension contributions. Do you know what the increase in actual pensions is?
    Either total payouts by year or average pension by year.

    Reply

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