By Samantha Marcus | NJ Advance Media for NJ.com
on April 20, 2017 at 6:14 PM, updated April 21, 2017 at 8:14 AM
TRENTON — Another study has found New Jersey’s public pension system is in the worst shape of any state in the nation.
The state’s pension woes helped boost how much money public pension systems across the U.S. have on hand versus how much they need to pay for future benefits to $1.1 trillion in 2015, the Pew Charitable Trusts said in its annual accounting of nationwide pension debts.
The figure, known as the unfunded liability, may hit $1.3 trillion in 2016, once the complete data for all 230 public-sector retirement plans becomes available, the study, released Thursday, found.
“Investment returns that fell short of expectations proved to be the largest contributor to the worsening fiscal position, with median overall returns of 3.6 percent,” Pew’s researchers said.
Pension plans in the 50 states added $157 billion in new unfunded liabilities from 2014 to 2015, though much of the increase was driven by the notoriously unstable pension funds in just five states — New Jersey, Illinois, Kentucky, Pennsylvania and Connecticut.
From 2014 to 2015, the year Pew reviewed, New Jersey’s pension debt rose from $113.1 billion to $135.7 billion.
The Garden State held enough assets to cover just 37.5 percent of its liabilities in 2015, enough to earn the title of worst-funded in the U.S.
It’s the second report putting New Jersey at the bottom. A Bloomberg study did the same in November. In 2014, New Jersey was No. 48 in the Pew study, with Kentucky and Illinois in worse shape.
It’s not my liability…Fu&$ all the union slobs who created this in the first place. The bigger problem with the whole scam is that we’re providing pensions in the first place. I don’t have a pension. Why should I pay taxes to foot someone else’s retirement? What do I get out of it? Trillion dollars for what?
8:45 the current situation was not created by the unions. It was created by the consistent skipping of contributions by government, combined with unfavorable investment results.
Too bad 8:45 am,
What you think doest matter. You do owe and you will pay. You were asleep while the politicians stole your tax dollars from the various union pension systems and now all of a sudden your awake. Too late’.
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The fact that you don’t have a pension is your problem. You obviously made numerous poor career choices.
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So time to suck it up buttercup and reach deeper into those extremely deep pockets of yours and pay your stupid tax!
Incredible lies being spread by the unions and their lackeys, even on the Ridgewood Blog. Look at Xanadu/American Dream Meadowlands, look at NJ state roads which cost 3X more than any other state, look at The Revel in AC… look at all the cops sleeping in their cars at Hudson Yards… all union boondoggles funded by Trenton politicians buying union votes. I won’t be paying for the mess created by Trenton and the unions because I’m leaving the state so best of luck Ridgewood Taxpayer and 9:54 when the NJ state pension plans run out of money within the next 10 years. $10 billion in annual pension checks sent out to you and your greedy pals. That number will only increase as the wall of retiring baby boomers starts sucking the funds dry. It’s YOUR fault 100%. Less than two contributing workers for every public pensioner in NJ? Cadillac health benefits? “Special” early retirements for cops and fire who retire on average in NJ at age 52? Have fun getting anything out of bankruptcy, and talk to your friends in Detroit if you want a reconnaissance report on your future. Sweet dreams buttercup, it’s your legacy kids who will get screwed on their pensions and healthcare. Must be a nice feeling lying to your own son or sons about that?!?!
I’m not paying any tax in NJ so suck it up yourself angry and bitter poster at 9;54am, you sound like a miserable union toad.
Agree with 8:45, the only way to solve the mess is to diminish public pension benefits by 25%~35%, shift public sector workers and retirees from Platinum level to Bronze level health insurance coverage, and stop paying out unused sick leave at retirement (should be “use it or lose it”). New hires should be shifted from defined benefit to defined contribution plans like 403(b) plans so the unions and their lackeys in Trenton can’t steal from their retirement funds. Then maybe there’ll be something left for current employees instead of just paying excessive benefits to the current crop of greedy pig retirees who only apparently care about themselves… oink oink ?
The issue people keep avoiding. NJ gets shafted by the Feds. Statewise every buck to DC brings 61 cents back. Last in the nation. Bergen County mid 30’s to the buck. If we got 75 cents back pensions are funded and the state has a surplus… even with 511 municipalities that overlap on everything. the deficit with DC is to the tune of 10’s of billions. NJ makes and the red states take….
go after the police and fire, whats with all the cop cars with tinted glass, hummmmmmmm, sleeping.
Pesmith, you keep saying this without offering any path for NJ to stop funding other states…. what’s the solution? At least with municipal mergers and much less overlap on BOEs, police and municipal services we are in control of our destiny. We can also diminish public sector pension and health benefits in NJ without Federal interference. With the Feds do we just say “no mas”? What is your proposed solution?
The FBI says NJ has 70% more cops per capita than the US average, with those cops pigging out on 50% more pay. This drives excessive pension benefits based on final years avg comp, and also drives up car insurance rates for all NJ residents because of all the speed traps they have to set up to justify their existence. Think about that: Ridgewood probably only needs 25~30 cops and should hire “specials” to protrct residents from Verizon, NJ Transit and PSE&G workers. Total scam with all of the overtime they currently charge to Village taxpayers. .
What you morons don’t know is the local police and fire pension (PFRS) isn’t under funded at all. The state public employee and teachers ( from every municipality) pensions are way underfunded.
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And like it or not you are on the hook for the misdeeds of every governor since Whitman and every legislature since 1995 that stole the pension money.
Hey 12:59,
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Apparently you know nothing about bankruptcy, and New Jersey isn’t Detroit! For Your Information,
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• The state itself cannot file for bankruptcy under the U.S. Bankruptcy Code.
• Municipalities cannot file for bankruptcy under the U.S. Bankruptcy Code without approval of the state (See N.J.S.A. 52:27-40).
• The state has in the past made it clear that they would not approve such a filing by a municipality. There are red flags under state law that identify when a municipality is experiencing financial difficulty. Such a municipality must appear before the Local Finance Board with a financial recovery plan.
• It is unclear, at best, whether the major costs affecting municipalities for unionized contractual obligations can effectively be terminated, changed or even renegotiated by virtue of Chapter 9 of the U.S. Bankruptcy Code. These obligations seem to be the driving force behind bankruptcy filings by local governments in other states, but they do not appear to have been successful in creating leverage in such contractual negotiations. The lack of ability to reorganize or dissolve that enables private corporations to bring their creditors to the table for serious negotiations as leverage may not exist under Chapter 9.
Unlike the city of Detroit, the state of New Jersey cannot declare bankruptcy. Federal bankruptcy laws don’t allow it.
“It’s not provided in the federal bankruptcy laws. There is a provision for municipalities and any other kind of organization in the state to go bankrupt, but not the state itself,” said Professor J. Fred Giertz, an economist who is director of the University of Illinois’ Institute of Government and public Affairs.
And although there has been some talk of changing federal law to permit states to reorganize their financial obligations through bankruptcy, it hasn’t gone far.
“In the United States we have a federal system where the states have powers that are protected from the national government, so there’s a real question about supremacy and whether the federal government can impose bankruptcy rules on the state, which is supposed to have powers that are protected from the federal government,” Giertz said. “I don’t think there’s any likelihood it’s going to be approved by Congress anytime soon.”
Whatever. Maybe the money will grow on trees? I’ll be long gone before you see a red cent more from me.
Hey 2:55, you keep up your diatribe about raising taxes yet even more to pay for your pension. Best of luck with that. Just where did these stolen pension monies go? Tax reduction? Hahahahahahahaha. Get over it, the money was blown on union boondoggles like Xanadu/American Dream, The Revel Hotel in AC, state roads that cost 3X more than the next highest state, excessive wages and benefits for you and your thug cronies to buy union votes in state & municipal elections, etc. I’m not on the hook for anything, have a choice where to live, and it won’t involve bailing you pigs out.
148… this has been a problem for almost 4 decades. I wish there was a magic solution. Sen Moynihan was trying to figure this out and commented how convoluted and arcane the process was. I would think holding our washington reps accountable and stop re-electing them unless they work to divert more money home would be a start. Our current congressman mentioned this in his campaign and is working to get some more money home…. the other part is home rule, which is our problem to fix. No one wants to regionalize so we have 500 plus municipalities of overlapping services. Yes the pension system needs to be fixed but people have to make our reps accountable, which except in rare instances like our district, is not happening today.
Ahhhh what’s wrong 9:44 am, did I embarrass you by exposing your stupidity saying the state of New Jersey is going to go bankrupt when legally it can’t ?
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Or did I hit a nerve when I said you were asleep in the voting booth?
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Or maybe you blew a gasket when I told you that the municipal Police and Fireman Pension funds are all adequately funded but it was the Teachers Pension and State Employee Pensions that was way underfunded Hmmmmm….
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Yea you do have a choice where to live and trust me we will not miss you at all. I’m sure the shithole you move to will have low taxes and even ;lower services. I hope you and your loser friends live it up in nowhere craptown USA>
Nice language from the poster above. Probably a 52 year old retired cop who lives in Florida or Bermuda tax free while drawing pension checks from NJ. If there is no money left then what difference does it make “legally”? Maybe your police pension fund can bet it all on red at your Revel Casino in AC? That might work.
9:44 am you sound like the guy who goes to a nice sit down restaurant and either leaves no tip or a $3.00 for a $200.00 bill
11:32 pm you sound like the guy who thinks it’s okay to draw a +$100,000 annual pension and Cadillac health benefits from age 52 after only 25 years of service. You think it’s okay to get six months worth of unused sick leave at your highest final comp rate, not at the rate it was awarded. And you think taxpayers should be on the hook when the PFRS pension funds run out in 15 years. If you use correct pension accounting and updated actuarial data on life expectancy, PFRS fund is only 56% funded not 70%. So you sound like a jerk living high on your excessive pension and retirement benefits, with total disregard for the taxpayers funding your golf rounds and Viagra prescription. You probably think you also deserve annual cost of living adjustments and social security, too. Oink ?
12:02 pm. Let me help you out, Yup, I am retired with a pension of over $100,000.00 & Cadillac health benefits after 31 years of service.
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You bet I took six months worth of unused sick leave at my highest final comp rate, not at the rate it was awarded. Why shouldn’t I?
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The fact is what I think doesn’t matter, the taxpayers ARE on the hook should the PFRS pension funds run out in 15 years. You should be happy knowing the PFRS is adequately funded, something that can’t be said about the Teachers pension fund, which will be the first NJ pension fund to collapse!
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The best part of all of this is knowing my retirement pay and benefits bothers you to no end. You can call me any name you like, that doesn’t bother me one bit. So keep ranting and raving about it, that just makes me soooo happy!
“hope you and your loser friends live it up in nowhere craptown USA”? You’re calling North Carolina, Tennessee and Georgia “craptown USA”? You sound like an anti-American, red commie. NJ can’t go bankrupt “legally”… yet. It’s funny what can happen when there’s no money left “legally” either. First you’ll lose your Cadillac health benefits. Then your pension will be diminished. These are certainties, you don’t deserve better healthcare than the taxpayers funding your extravagant lifestyle, so you can make arrogant, boastful posts like the one above. You sound like a real sicko. Maybe your union minders should lock you back in your cage? Or use that Cadillac health care to get real help.
Hey 6:39 am,
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What’s wrong. can’t handle the truth? I never mentioned a town, county or state. But you certainly did….and I quote….
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North Carolina, Tennessee and Georgia.
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Why did you name those places? Do you have a problem with those states?
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The only commie here is you. You want to invalidate laws to get your way. That’s not America or American at all. Did you forget that we are a nation of LAWS. What you want to do is called being a Dictator. If you want to be a Dictator you are in the wrong country buddy.
I know it annoys you that I’m not at all concerned about my Health Care or Pension being diminished. The FACT is that it’s the State pension systems that are failing, the municipal and county pension systems are doing just fine. So no I will not lose my Cadillac (I prefer the word Platinum) health care, and my pension will NOT be diminished at all. Not one dime.
As for arrogant boastful posts, since when are facts, which are true, called boastful and arrogant. If anyone is making outrageous statements that are false it’s you. Your hate filled and false beliefs about government workers and their benefits and pay is bordering on obsession and psychotic. You keep wishing and hoping for others who are retired to be hurt financially and medically, how sick is that? You really need some serious help. I hope you get it soon.
Only a commie pinko would think their public pension should be constitutionally guaranteed, but you greedy union hogs want that in NJ unlike every other state in the union. You PFRS lackeys also want to stick it to state and municipal taxpayers by assuming management of your own pension assets but make taxpayers liable for 100% of any liabilities. That’s pure psychotic and delusional arrogance.
I guess you didn’t comprehend or understand when I said your name calling doesn’t matter to me. It’s is like water on a ducks back to me. Call me any name you like! Consider it mind over matter…..I don’t mind what you call me cause you don’t matter to me.
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We are well on our way to taking over management of OUR PFRS pension system. And there isn’t thing one you can do about it. The citizens of New Jersey are already on the hook to guarantee our pensions. Now, once we assume the management of the PFRS pension, the leaches like you will not be able to syphon off money in the name of management fees (which have tripled under Gov. Christie so he can payback his campaign donors) and the good citizens of New Jersey will have better protection from you pension fund management leaches and the Governors who stole money from the PFRS pension to pad their state budgets and pay for special interest and lobbyist programs.
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I will say it again, your obsession with other peoples retirement and benefits and psychotic comments only serve to further prove you are in need of professional help. I will pray for you, and hope you get better soon.
Paying for the past instead of investing for the future? Explains much of why NJ’s economy is in the toilet. Will.be an interesting test case on what to do as the state spirals down into oblivion. New legislation will be needed to resolve the liabilities, many of the needed federal & state laws haven’t been written yet, but states like NJ and Illinois will provide the necessary precedents. Current employees certainly won’t have it as good as current retirees, which is why some posters above are defending paying for the past and ignoring investment in the future. This is generational warfare, and the retiring baby boomers are winning, big time.
1:07 AM, keep dreaming. The reason New Jersey’s economy is in the toilet is because of people like you! You just can’t wait to see NJ have financial trouble, which it won’t your the gloom and doom kind of person who’s always looking for the worst in everything