Archive for the ‘New Jersesy Pension’ Category

Scariest NJ Pension Report Numbers – 2021

You might have your own but based on this spreadsheet, created by pulling off pertinent valuation data from each of the July 1, 2021 actuarial reports for the New Jersey retirement system with tabs for similar data going back to 2020, 2019, 2015, 2012, and 2000, here are mine:

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NJ Actuarial Reports – The Believable Numbers 6/30/21

The June 30, 2021 actuarial reports for the New Jersey Retirement System are now all out and there are a few numbers therein that can be taken seriously (none involving liabilities or even the market value of assets considering all those self-valued alternative investments). The main purpose of these official actuarial reports is to determine the ‘required’ contributions which practically all parties have a vested interest in understating so we get a bunch of fanciful numbers where possible. However, these numbers you can’t pretty up:

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NJ Chooses Insecurity

Enacted by state legislators and Gov. Phil Murphy in 2019, the New Jersey Secure Choice Savings Program was supposed to make IRA-type retirement funds available to state residents who work at private businesses with 25 or more workers.

This was supposed to be a windfall for those of us in the pension administration business anticipating employers who would not trust the state to secure pensions for their employees to set up their own private plans. However, the state has been missing deadlines and according to an article in northjersey.com, it may never happen.

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NJ COLA Quotes

“Restoring cost-of-living pension hikes for N.J. public workers gets new life as inflation soars” was the headline of a lengthy article in nj.com through msn.com but the upshot was that it is not going to happen as politicians out of office and even some union representatives are wary, judging by these excerpts:

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COLAs Off NJ Table

Apparently in every budget in the “history of the state of New Jersey”, until the last two, actuaries have been snubbed.

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NJ Pension COLA Dilemma

The nj101.5 article took from this week’s Senate hearing on the budget that:

Unless lawmakers bring back cost-of-living adjustments to public employee pensions sooner, it will be roughly a decade for local workers and two decades for state workers before their retirement checks get yearly increases to account for inflation.

I took from it that COLAs are never coming back based on this heckle:

More video excerpts starting with the shock of NJ pensioners having to wait so long for COLAs:

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Time for a Pension Reckoning in New Jersey

That is the title of a City Journal article that advocates for public employees being put into a Cash Balance Plan noting a $186 billion deficit in the current Defined Benefit Plan. But what Thomas J. Healey and Andrew G. Biggs fail to mention:

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Sad State of NJ Budget

Three lines in today’s 2023 Budget Address that touch on public pensions.

And we were told we’d certainly never meet our public-employee pension obligations. Not only did we do that last year — marking the first time in a generation that our full obligation was met — we’re doing it again in this year’s budget with a $6.8 billion payment.

…………………..

With more aid for our public schools and a full pension payment, this budget will continue to apply downward pressure against property taxes.

Not a heavy lift to make a $6.8 billion pension payment (a little less than than the $6.9 billion for FY22) when you borrow $4 billion and get another $10 billion in federal aid. In looking over the FY23 Budget in Brief here are some notable excerpts:

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NJ Pension Fund Savior

There are a lot of frustrating aspects to living in New Jersey. This is number one:

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NJ Retiree Update – December, 2021

Based on state pension data updated through December, 2021 there are 363,722 retirees getting annualized pensions of $12,395,368,150.

Through December, 2020 there are 358,277 retirees getting annualized pensions of $12,023,790,874.

There are now 4,789 retirees getting over $100,000 annually. Of those 118 are getting pensions of over $150,000 annually:

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