Posted on

Moody’s says N.J. pension fund shows severity of credit status

imgres-1

Moody’s says N.J. pension fund shows severity of credit status

DECEMBER 3, 2014, 2:20 PM    LAST UPDATED: WEDNESDAY, DECEMBER 3, 2014, 2:20 PM
ASSOCIATED PRESS

TRENTON  — A rating agency says New Jersey’s unfunded pension liabilities show the severity of the state’s credit circumstances.

Moody’s finding comes after the state’s recent announcement that public pension liabilities nearly doubled to $83 million, due to new accounting rules.

The agency laid out its concerns in a report released this week. Among the concerns it raises are the possible depletion of public worker and teacher pension funds by 2024 and 2027, respectively.

Despite the concern, Moody’s says the new liability figure is in line with its own calculations.

Moody’s says it has downgraded the state’s credit rating twice, in part due to the pension fund.

https://www.northjersey.com/news/moody-s-says-n-j-pension-fund-shows-severity-of-credit-status-1.1145420

9 thoughts on “Moody’s says N.J. pension fund shows severity of credit status

  1. This means New Jersey’s relative borrowing costs will increase… the state just had to promise a yield of 2.75% to raise $525mn yesterday, a 0.5% premium more than benchmark munis… that’s 5X more than what they paid last year when they premium was only 0.09%. The spreads should have been much wider based on the deterioration of New Jersey’s credit quality, and some investors argue this yield gap will widen to as much as one percentage point within the next year. That means NJ will have to pay 1% higher than benchmark municipal bond rates to raise money to fund the blackhole of pension, health care and accumulated leave underfunding. Let’s forget about future spending on schools, hospitals and infrastructure – all we can afford are past promises made !

  2. If all we can do is pay the credit card bills due to past promises, what’s left for the rest of the state ? Maybe we should close all of the state parks, schools, public roads and hospitals for a few years, and shut down the ports and airports in Newark, and Teterboro as well, and take all state & local funds and give it to the unions to fund their pensions, healthcare and retirement bonus checks ? Probably three years of 100% of the budget going to those items until we’re good.

  3. Say thank you to Christie Whitman and the beat goes on under Christie.

    1. you failed to mention corzine and macgreevey


  4. Anonymous:

    Say thank you to Christie Whitman and the beat goes on under Christie.

    you should get that knee looked at…

  5. And promises are broken all the time….,
    Tough shit to the union pigs feeding at the trough of the nj taxpayer…..enough is enough……your done…..

  6. Yep you are right,promises are broken….and you have been complaining like a baby about this for years now and nothing has changed. And nothing is going to change except you will be reaching into your pocket paying more in taxes. And do you want to know why you will be paying more? Of course you do, because N.J. residents keep electing people who have pet projects they want to waste taxpayer dollars on so they can be reelected. So keep voting in Democrats N.J. so I and many others can continue to cash our pension checks, which we will continue to do for years to come and you aren’t going to stop it so tough shit pal your screwed. Ha Ha Ha

  7. Hey #7, I thought your wife banned you from this blog to prevent you from having your “MCGreevey Moment” here ? Glad you’re so open about the rest of us paying more in taxes so you can keep cashing in your pension checks. Someday it will be just you and your thug buddies paying for all the promises, because all of the taxpayers who don’t need to live in NJ will have left.


  8. Anonymous:

    nothing is going to change except you will be reaching into your pocket paying more in taxes. And do you want to know why you will be paying more? So I and many others can continue to cash our pension checks, which we will continue to do for years to come and you aren’t going to stop it so tough shit pal your screwed. Ha Ha Ha

    I guess you didn’t read the latest jobs report showing NJ lagging the country and our neighboring states, or look at the net population decline in NJ as middle class families leave the state? You only want us to throw more taxes at a wall of ineptitude, because it pays your pension check. No questions asked on why we have the highest state + local taxes on the planet, and yet we somehow still rang up a $170 billion unpaid bill in NJ for future pension checks, retirement bonuses and healthcare expenses. Let’s just throw more tax dollars at that expanding sink hole, maybe they will fill it ? Great idea #7.

Leave a Reply

Your email address will not be published.