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Strong outflows take toll on state pension fund
New Jersey’s pension fund for government workers might be compared with a boat where rowers strain their oars to advance against a roiling current.
The pension fund, in total, gained a whopping 18 percent in its investments in the fiscal year that ended June 30.
But while state money managers pulled hard, they were faced with strong outflows: the fund had to pay out $7.7 billion more in benefits than it took in from contributions in that same time.
As stock markets fell in the past quarter ending Sept. 30, the fund’s investments slumped by nearly 7 percent and it had to pay out another $1.8 billion in benefits.
“They’re doing worse than treading water, and that’s not a surprise,” said New York-based consulting actuary Jeremy Gold, who tracks public pension funds. (Method, Gannett)
