Good news. The faster the plans go insolvent the faster benefits can be diminished. Wonder if the unions will lower the assumed rate of return from 7.65% to actual 20 year returns of only 7.2%? Maybe they can bet all of the funds on red in Atlantic City? Or use updated actuarial data on lifespan which will add 2-3 years of pension liabilities per retiree? How will they resolve the issue of only 1.24 contributing workers for every retiree? Maybe they’ll reinstate COLAs to deplete the funds even faster. NJ state and local taxpayers should be happy this mess is no longer theirs. Thanks PFRS.
I’m sure the unions will do a great job managing their own pensions. Maybe they can invest more in American Dream Meadowlands or put it all on red in the casino at their own Revel hotel?