Trenton NJ, Over the weekend, The Star Ledger warned that New Jersey is facing what they describe as a $1.2 billion “Pension Bomb”. The combination of a scheduled payment of the state’s first full recommended pension contribution and Governor Murphy’s reckless rush to lower the assumed rate of return of the system’s investments have created a year-over-year increase of more than $1.2 billion in what taxpayers must pay to keep the public pension system afloat.
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.
Trenton NJ, Research by The Pew Charitable Trusts shows New Jersey has the second-largest pension fund deficit in the nation and underscores the urgent need to transition to a more sustainable hybrid system, NJBIA President & CEO Michele Siekerka said Friday.
According to Pew’s nationwide research on the fiscal health of public employee retirement plans, New Jersey ranked 49th in the U.S. because its plans were only 36% funded. New Jersey is one of only five states with less than 50% of the assets needed to fully fund its pension liabilities, according to Pew’s analysis of 2017 data.
“Ummm, those unfunded pension liabilities are based on some outrageous assumptions:
1. The State Investment Council assumes an annual return of 7.5% on the NJ state pension assets; a 30 year US treasury (which matches a long term pension liability) currently yields 2.825%. Pew Charitable Trusts suggests 6.5% is a more conservative assumption, which would increase the unfunded liability by 28% versus the current assumption assuming 7.5% annualized returns…
Facts matter. Our retired public sector employees already draw $12 billion plus a year just in pension checks… not even including their “pay as you go” premium healthcare benefits until age 65. The pension checks alone equate to 33.6% of the actual 2018 NJ state budget. When the pension fu de go insolvent as forecast by 2027, NJ taxpayers will be in the hook for these pension & healthcare payments. Sweeney knows this and is telling the truth. The unions and their full-time lawyers just continue to lie and muddy the waters like the bloated piggies they are.
“NJ already has the highest combined, state, local, and corporate tax rates in the United States… and the public pension funds will be insolvent by 2027… which means NJ taxpayers have unlimited liability carrying the $12B per year paid out to retired public sector workers, plus their PAYGO (pay as you go) platinum health insurance… Ponzi scheme where the math doesn’t work when private sector employers are leaving and aren’t investing in the state. NJ also has net migration which only worsens the Ponzi scheme. Public sector unions only care about squeezing more blood from a shrinking stone. Greedy pigs “
“Same for CA, IL, etc, but When the state sends out $12bn a year already in annual pension checks (or 1/3 of our current annual NJ state budget), we have an unlimited pension liability in perpetuity once the public sector pension funds go insolvent by 2027… and that’s not even including “pay-as-you-go” (PAYGO) platinum healthcare insurance… the math doesn’t work. States like NJ, CA, IL, etc will have to explore bankruptcy filings to protect them from all of these excessive liability claims! “
Trenton NJ, Senate President Sweeney introduced a sweeping bill package aimed at slashing the high cost of government in New Jersey originating from the recent Path to Progress report. In response to the continued attacks by New Jersey public work leaders, particularly the leader of CWA, Hetty Rosenstein, the President of the New Jersey Building and Construction Trades Council, William Mullen, released the following statement.
Trenton NJ, The legislative introduction of the fiscal reforms and cost saving initiatives from the “Path to Progress” report has already generated widespread support from an array of individuals and organizations throughout New Jersey, including:
“The state of New Jersey faces short and long term challenges. I was pleased to be part of the ‘Path to Progress’ team as several of our recommendations will significantly improve the fiscal health of the state – particularly those related to employee pension and health benefits, and school consolidation. Of particular note – even with the pension reforms – no current retiree or those employees already vested will be negatively impacted.” – Richard F. Keevey, former Budget Director and Comptroller for the State of New Jersey, former CFO, U.S. Department of Housing and Urban Development, and former Deputy Under Secretary for Finance, U.S. Department of Defense
Glassboro NJ, Speaking at a policy forum last night, Senate President Steve Sweeney talked about the need to confront the state’s mounting fiscal problems and warned that New Jersey won’t be able to make critical investments in education, transportation, higher education and social services unless it enacts major structural reforms to address the looming budget crisis fueled by runaway pension and benefit costs.
Trenton NJ, while Murphy Administration called on liberal activists, to push back against state Senate President Stephen Sweeney’s big plan to fix New Jersey’s long-term fiscal problems , Senate President Steve Sweeney and Assembly Majority Leader Lou Greenwald tonight warned that New Jersey won’t be able to make critical investments in education, transportation, higher education and social services unless it enacts major structural reforms to address the looming budget crisis fueled by runaway pension and benefit costs.