N.J.’s public pension liability continues to grow
WEDNESDAY, FEBRUARY 26, 2014
BY JOHN REITMEYER
STATE HO– USE BUREAU
THE RECORD
Among the biggest numbers in Governor Christie’s budget address Tuesday was the $2.25 billion payment into the state’s public employee pension system, a record for New Jersey.
But Christie said more changes are needed, citing Detroit’s bankruptcy last year as a warning of what could come in New Jersey if officials are not proactive. He warned that as pension payments rise in future years, they will take resources from other priorities.
State’s pension problem: According to the latest projections, a $52 billion gap exists between resources and pension promises made to retired and current employees. That unfunded liability arose over the years as governors and lawmakers from both parties — including Christie in his first year — did not make the full payments that actuaries estimated were needed. Benefits were also enhanced at times without being properly funded. Recent investment-market gains — though strong — have not been enough to offset the funding shortfalls.
Benefits changes in 2011: Legislation enacted in 2011 raised pension contributions made by public employees and ended most cost-of-living adjustments for retirees. Christie and lawmakers — including many Democrats — agreed to start working toward making the full, actuarial required payments, phased in over seven years.
What Christie is saying: Along with budgeting a record $2.25 billion payment into the pension system — about four-sevenths of what the actuaries say is needed — Christie challenged lawmakers “to go further.” But he did not offer any specifics or say definitively what reforms he seeks; his new, $34.45 billion budget does not count on more worker givebacks.
– See more at: https://www.northjersey.com/news/247202411_N_J__s_public_pension_liability_continues_to_grow.html#sthash.go2FawAG.dpuf
Our children have so much to look forward to if they stay in NJ, paying off this mess. Assume that black hole doesn’t include the cost of free, “pay as you go” healthcare, which our politicians in their wisdom, have handed out like candy to public sector workers?
I’d rather use that 2.25 billion to build roads with non union companies.
We would get twice as many miles of roads repaired for our tax dollars.
Yeah…and a road that would look like rippeled potato chip. Many non union paving companies must pay prevailing wages similar to union wages.
I’ll take the union guy’s any day. They understand English.
the union guys don’t go out of business if they do a bad job.
Interesting analysis here: https://newjersey.watchdog.org/2014/02/24/100k-pension-club/
The 2013 list includes 8 retirees from Ridgewood Village departments receiving over $859,00 per year (an average of over $107,000 each). This amount is up over 35% just since 2011, and excludes “pay-as-you-go” family health benefits which state taxpayers and property owners are liable for. This is up from 6 members in 2011, and the list should at least double by next year as seven senior RPD officers retire and we add the previous Village Manager as well. There are also some double dippers on the list, too, who draw part of their pension from the Village. If you include them, then retiree pensions to these select few are already equivalent to +2% of Ridgewood’s Village Budget, going to +4% by 2015.