the staff of the Ridgewood blog
Ridgewood NJ, Governor Murphy once again plays games with the New Jersey pension funds . At stake are benefit payments to nearly 800,000 active and retired state and local workers.
For years, New Jersey had over inflated its assumption on returns on public pension fund investments ,but in the waning days of the Christie administration the NJ Department of treasury moved to face reality.
The Christie’s administration lowered the assumed rate of return ie… how much money the pension system expects to make from its investments from 7.65 percent to 7 percent .
The change was praised by the pension fund actuaries, who say expecting a 7 percent return on investments is closer to what other large funds can reasonably figure they’ll get over the long term.
Facing investment reality, without the needed pension reforms and has increased state pension contributions another $422.5 million in Murphy’s first year, and leaves New jersey with a $1.2B public-worker pension mess.