Archive for the ‘New Jersesy Pension’ Category

Russian Roulette with NJ Pensions

A pension actuary for 35 years, Assemblyman Edward Thomson explains the dangers of not having safeguards that protect the state pension system during a hearing on legislation giving police and fire unions full control over their pensions.

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The amendment was not incorporated and today both the Assembly and Senate will pass the bill, against the advice of a few newspapers here.

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Precedents for Union Takeover of Public Plans

A legislative press release on the bill to give New Jersey police and firefighters management of their pension fund claimed:

It would vest the board with all the functions, powers, fiduciary responsibilities and duties pertaining to the investment or reinvestment of pension funds, including the purchase, sale or exchange of any investments or securities or accounts under the control and management of the board.

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The primary obligation of the board would be to direct policies and investments to achieve and maintain the full funding and continuation of the retirement system for the exclusive benefit of its members.

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The fundamental nature of the PFRS plan would not be changed by the bill, and Johnson noted that there are many examples of employee and union-managed pension plans in the private sector. Also, Washington, Ohio and Colorado’s police and fire pension funds provide trustees with a variety of fiduciary responsibilities, investment, and policy making powers. This bill is modeled after best practices from those states.

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A “super majority” vote of at least eight members would be required to take any actions increasing or reducing member benefits — with the exception of restoring cost-of-living increases — or employer contributions if they are not consistent with actuarial recommendations, according to the bill.

If this board can:

  1. decide on investments,
  2. increase or decrease member benefits, and
  3. determine employer contributions,

that’s pretty much everything involved in sponsoring a plan.

Have Washington, Ohio, or Colorado gone this far?

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Unions To Run PFRS in NJ

The bills will pass on Monday with token ‘no’ votes from a few Republicans who don’t really need union support in their districts but what does allowing the Police & Fire unions to manage their pensions mean for the system as a whole?

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S5 Votes on Monday

The bills up for a vote by the New Jersey Senate on Monday were posted on the legislatiure’s website (full list of bills at the bottom of this blog).

On that list is….

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Murphy’s Budget On Pensions

The New Jersey FY19 Budget in Brief had this to say on pensions:

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S5 Vote Monday

The bills up for a vote by the New Jersey Assembly on Monday were posted on the legislatiure’s website (full list of bills also at the bottom of this blog).

On that list is:

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NJEA on NJ Budget

New Jersey Education Association (NJEA) president Ed Richardson discusses Governor Phil Murphy’s plans for funding public employee pensions with someone else who admittedly has no clue on the numbers:
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For their information…..

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