S5 Progresses

It seems inevitable that management of the New Jersey Police and Firemen’s Retirement System (PFRS) will be transferred from the Division of Pensions and Benefits in the Department of the Treasury to the Board of Trustees of the PFRS. Earlier this week S5 got a thumbs up from a Senate Committee (11 -1) and surprisingly the Office of Legislative Services (OLS) did have an opinion on the fiscal impact.

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Wirepoints Special Report

Ted Dabrowski and John Klingner at Wirepoints analyzed pension data as compiled by Pew Charitable Trusts from 2003 through 2015 to come up with a report asserting that “too little money into pensions hasn’t been the issue. Instead, it’s the dramatic growth in pension benefits promised by politicians that’s been bankrupting Illinois.”

Unfortunately for the authors they were unable to claim that Illinois had raised benefits more than any other state or had negative asset growth, primarily because of the existence of New Jersey.

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Rescuing Retirement Flaws

Tony James, Blackstone chief operating officer and “Rescuing Retirement” co-author, was on CNBC today pushing his Guaranteed Retirement Account (GRA) proposal:
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What the panel seems to have missed…

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Pensions-Time To Up The Ante!

 

Are you comfortable with the status of your state?

Looking back on your voting choices, do you have content or contempt?

Do you feel you have voted “as told”, or intelligently?

How would you reconcile a voting history of supporting a party and contempt of the current status?

I am apolitical and not interested in your voting.  But we are in an election year and your vote is important.  Will you vote for the status quo, as you have done?  Will you challenge all your beliefs, and make a difference?

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NJEA on Pensions

The New Jersey Education Association (NJEA) buys time on ‘public affairs’ programs to spread their message. In regard to the worst funded state pension system here is that message:
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The problems with it:

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Pensions-Public vs. Private, Mortal Enemies?

A commenter, MJ, has some thoughts that led to this posting.  Thank you MJ for your comments.

I am an economist and Monetary Theorist.  I am approaching the pension crisis from a different perspective.  I am still researching various types of pensions and therefore do not yet render an opinion.  One item that drives me nuts is commenters banging the table and screaming that all public pensions are crimes and X-style pension is robbery so we must move to Y-style immediately!

Let’s slow this runaway train.  Remember, all types and styles are similarly underfunded.  My analogy is telling a man treading water;” You are safe!  Swim to any sinking ship for rescue!”

Not much of an improvement.

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Pensions-Pensions and loans? Not Quite Ready for Prime Time (part duex)?

In my last post, I had a typo.  I referenced Mr. Sherrod Brown as a Representative from Ohio.  Mr. Brown is a Senator.  My apologies to Senator Brown and his staff.

Thank you for your corrections.

This post will be a sort of part two addition to yesterday.

Gentle reader, are you scared about your pension?  If so, your greatest enemy is ignorance.  When I watched the IL conference yesterday state Representatives are working on solutions and I was impressed by the earnestness.  But the single largest key was not discussed, interest rates.  What are these, how do they work, and why should I be concerned?

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