Archive for the ‘New Jersesy Pension’ Category

NJ Vals 7/1/18 (7): Media Coverage

nj.com got around to reporting on the July 1, 2018 actuarial reports transcribing the numbers we had in our spreadsheet while hinting at the lies therein:

The picture looks dramatically different when measured according to national accounting standards that are important for public financial disclosures and for comparing New Jersey’s system to other states.

Under those uniform standards, New Jersey’s pension system is getting healthier, as unfunded liabilities dropped by nearly $12 billion to $130.7 billion. The ratio of assets to liabilities increased nearly three percentage points to 38.4 percent in the fiscal year that ended June 30.

The state’s methodology factors in a higher long-term assumed rate of return and recognizes the lottery as an asset of the pension funds.

There was also coverage of S3753 which essentially followed the scripts of those involved:

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S3753 With an Example

S3753 would add a cash balance component to the Defined Benefit pensions for some teachers and members of PERS and the text is out. Here is the summary and my example of how it would impact the benefit of a new participant.

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NJ Vals 7/1/18 (6): Phony Assets

According to the New Jersey Division of Investment there was about $78 billion as of June 30, 2018 in the Public Employee Retirement System but when it came time to determine contributions for the July 1, 2018 valuations that value jumped to over $100 billion.

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NJ Pension Reform Law Introduced

According to njbiz:

Senate President Stephen Sweeney, D-3rd District, said at a Thursday afternoon press conference that he would unveil two constitutional amendments to go before voters in an effort to force Gov. Phil Murphy’s hand on the proposals if he does not approve the measures.

One of the proposals, Sweeney said, calls for reducing pension obligations for state workers with less than five years of state service by raising their retirement age to 67 and adopting a hybrid of a pension plan for the first $40,000 of salary and a 401k-style retirement for anything above that amount.

That would save $24.8 billion over the next 30 years for state and local governments combined, and reduce their pension liability by $17.8 billion over that same time frame, Sweeney’s office said.

Sweeney was met by boos, catcalls, and Twisted Sister* at a scheduled event later in the day even though this is all we have on the pension reform:

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NJ Vals 7/1/18 (5): Phony Funded Ratios

The official unfunded liability for state-funded plans dropped from $58 billion last year to $43 billion this year. How did this happen? Blatant fraud.

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NJ 7/1/18 Vals (4): The Believable Numbers

The July 1, 2018 actuarial reports for the New Jersey Retirement System are 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) since there is very little prettying-up actuaries can do with these ugly numbers:

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NJ 7/1/18 Vals (3): Teachers’ Net Normal Cost


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That less-than-$1-billion amount is the total Net Normal Cost as of 7/1/18 as calculated by Cheiron in their valuation reports which happens to be lower than what Milliman and Buck/Conduent calculated in prior years. The biggest drop came in the Teachers’ plan:

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