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New calculations troubling for NJ pension system

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New calculations troubling for NJ pension system

DECEMBER 7, 2014    LAST UPDATED: SUNDAY, DECEMBER 7, 2014, 12:10 AM
BY JOHN REITMEYER AND MELISSA HAYES
STATE HO– USE BUREAU |
THE RECORD

New calculations show that the pension fund covering retirement benefits for most of New Jersey’s public employees is projected to go broke in a decade, not the 30 years officials had estimated just months ago.

The fund that covers retirements for judges and court workers has less than 10 years.

And the largest of New Jersey’s pension funds, the one for teachers, will run out of money in 13 years.

The actual values of the pension funds have not changed, and the investments are still growing at rates much better than managers had predicted. What did change was the formula used to account for how much money will be needed to cover benefits for future retirees. When the impact of that change was made public in a Wall Street analysis last month, the differences were stark.

The new projections are not the most conservative, but experts say they are more realistic than those New Jersey had been making before it switched to the new accounting method. But they remain only estimates, and a number of factors could change the depletion dates, including how much money is deposited in the system in the future and whether investments can beat the anticipated |returns.

Oddly, both the Christie administration and the unions fighting in court to force the governor to restore billions in payments to those funds have embraced the new figures.

https://www.northjersey.com/news/new-calculations-troubling-for-nj-pension-system-1.1147868

37 thoughts on “New calculations troubling for NJ pension system

  1. So in reality it’s 5 years…..
    Guess what? Tough shit.
    The taxpayers of NJ are sick and tired of being extorted by the unions….cops, fire and schools combined. The party’s over pals and we’re not paying the tab.

  2. I taught for 39 years. My pension is $28,000. Sorry you feel I am guilty of extortion.

  3. Keep dreaming #1

  4. You must be a politician or a family member of one since you obviously don’t care about how politicians keep lining their pockets with taxpayer money. You should be ashamed of yourself blaming teachers and police and firefighters for the states finances. But then that’s why you post anonymously.

    David Addison

  5. Good luck in bankruptcy court #3

  6. Number 1 said ”

    The party’s over pals and we’re not paying the tab.

    Here is a quote from the article number 1:

    “States by law can not go bankrupt, so if the pension funds run out of money, the full burden of paying out benefits would shift to the state taxpayers. “

    Better start reining in your politician friends and their wasteful spending of your gonna pay like it or not! The party, as you so called it, is not over!

  7. #4, way to obscure the facts. The post makes no reference to teachers, police and firefighters, but to their UNIONS. The same unions who have negotiated entitlements, accumulated leave bonuses, and comprehensive health care coverage for life above and beyond what anyone in the private sector gets. The state of NJ now has a $170 billion unfunded bill thanks to all of the future promises we need to pay for. The unions pigged out at taxpayer expense and then agreed when Whitman, and other Democratic Governors borrowed money from their pension funds in exchange for benefit enhancements. It’s pure greed, and #1 is correct – state & local taxes can’t go up on people who already pay the highest taxes in the country when all it does it fuel more union greed. We’re not paying the tab.

  8. #7 like I said you must be a politician or a family member of one. Who do you think makes up the UNION members? Let me give you a hint, Teachers, Police Officers and Firefighters. You or your politician family member(s) have been stealing Billions, and yes I meant Billions not Millions, from municipal, county and state pensions for years to fund your many state pet projects and earmark programs and now, because you stole and NEVER replaced that money the pensions are in financial trouble. So to hide the truth that you are to blame you come here to spin the responsibility onto others, sorry no sale this taxpayer isn’t that dumb. No wonder you post anonymously, because YOU or your family member(s) are the problem not Teachers, Police Officers or Firefighters.

    David Addison

  9. So #7, in short, you WILL be paying the tab….tough crap

  10. Many pension people get two full pensions. They find ways to milk the system. And what about medical benefits. Ordinary workers have to contribute more to health benefits than NJ pension receivers.

    Most people now in private sector do not receive pensions.

    The system should be reformed so that it reflects what the private sector is going through.

    Why should NJ workers automatically retire with all those cushy benefits when private sector workers do not.

    Govt workers also should not be given all those benefits.

    Social security and medicare is sufficient. Everything else is the worker’s responsibility in how he chooses to invest/save his money.

  11. There you go complaning like a baby again. First of all there are only a few individuals who qualify for two pensions. Just like Social Security some individuals find ways to milk the system.

    Secondly, your wrong about medical benefits. NJ government workers have been contributing to their health benefits since 2011 when the Governor and Legislature changed the pesnion laws, and in some cases paying more Annually then private sector workers

    At least try to get your facts correct before you post them.

    Most people now in private sector do not receive pensions.

    The system should be reformed so that it reflects what the private sector is going through.

    Why should NJ workers automatically retire with all those cushy benefits when private sector workers do not.

    Govt workers also should not be given all those benefits.

    Social security and medicare is sufficient. Everything else is the worker’s responsibility in how he chooses to invest/save his money.

  12. time to piss up a rope.

  13. The only way to solve the problem is for the states (not just NJ) to merge these overly generous state pensions that are broke into the social security program.
    Tough shit if the workers don’t get a lottery ticket upon their retirement at age 50.

  14. The feds are already looking at private 401(k)s thay can take away from private individuals and place in the Social Security system. No mention of taking state pension systems into Social Security, so you 401k holders will be fucked…….LOL

    https://www.teaparty911.com/blog/is-the-federal-government-eyeing-your-401k/

  15. You said it number 13. They usually retire at age 60. Real cushy benefits. For ordinary work.

  16. I never heard that from a LEGITIMATE media source number 14.

    Like the Record, NYT, Wash Post. Wall St. Journal.

    If I put money in a savings acct. from age 20 and take it out at age 65, the federal govt. cannot take that money. It’s the same with a 401K. It is not owned by Uncle Sam.

    I can be taxed. That’s all.

  17. I never heard that from a LEGITIMATE media source number 14.

    You think ABC, CBS, NBC, the Record, NYT, Wash Post. Wall St. Journal would report that not a chance. Try reading this….

    https://www.wnd.com/2012/11/now-obama-wants-your-401k/#!

  18. What that article is saying is that Obama is going to force people to save their money.

    Good idea. Eliminate welfare rolls.

  19. Sorry but this quote from the article says quite clearly they want to play Robin Hood……

    Recent evidence suggests government officials continue to eye the multi-trillion dollar private retirement savings market, including IRAs and 401(k) plans, eyeing the opportunity to redistribute private retirement savings to less affluent Americans and to force the retirement savings out of the private market and into government-controlled programs investing in government-issued debt.
    Read more at https://www.wnd.com/2012/11/now-obama-wants-your-401k/#zZ8fpVpMA3QqVwIR.99

  20. If the Democrats are in control, they will try to steal 401K money etc.
    If it walks, talks, breaths, eats or shits they want to tax it so they can give it to their base of voters (welfare recipients and illegal aliens) in order to buy votes.

  21. This is scary shit! I guess I shouldn’t be surprised the Dems would do this….


  22. Dawn Morgan:

    So #7, in short, you WILL be paying the tab….tough crap

    No I won’t Dawn. And your benefits will be cut, in court if necessary. Tough crap.


  23. Anonymous:

    You or your politician family member(s) have been stealing Billions, and yes I meant Billions not Millions, from municipal, county and state pensions for years to fund your many state pet projects and earmark programs and now, because you stole and NEVER replaced that money the pensions are in financial trouble. David Addison

    Nice try Dave – Governor Whitman was allowed to borrow money by the AFL-CIO in exchange for pension enhancements like reduced contributions, earlier legal retirement ages, and increased pension benefits. Your benefits are too good, you can retire too early, and you still don’t contribute enough towards either your pension or your healthcare. Your unions okayed all of this in return for those enhancements. Why don’t you make one mention of the fact that your accumulated leave benefits, as well as pension & healthcare entitlements are way, way too good ? It’s like you just expect the deal you’ve got. Hey, if my union is negotiating for golden parachutes, and Cadillac healthcare for life, of course I’ll take it ! But who pays ?

  24. No I won’t Dawn. And your benefits will be cut, in court if necessary. Tough crap.

    Wrong again Dufus, you will pay like it or not, unless you move,, but even the courts can not cut those benefits. Nice try though…….

    1. sorry to clue you in but courts have cut benefits in other states


  25. Anonymous:

    NJ government workers have been contributing to their health benefits since 2011 when the Governor and Legislature changed the pension laws

    Wow, contributing to your Cadillac healthcare benefits since 2011 ! Life’s a bitch. Do you contribute part of your income to your pension, too ?


  26. Anonymous:

    No I won’t Dawn. And your benefits will be cut, in court if necessary. Tough crap.
    Wrong again Dufus, you will pay like it or not, unless you move,, but even the courts can not cut those benefits. Nice try though…….

    Illinois will make a nice precedent for a state bankruptcy filing, followed closely by NJ and CA. And hey Dufus, ask public workers in Detroit if a court can reduce benefits.


  27. Anonymous:

    you will pay like it or not, unless you move…

    So your whole premise is that people won’t move? Are you serious? Look at the net migration OUT of NJ. Middle class flight, just like Detroit. Have fun paying the bills when people DO move Dufus.


  28. Anonymous:

    The only way to solve the problem is for the states (not just NJ) to merge these overly generous state pensions that are broke into the social security program.Tough shit if the workers don’t get a lottery ticket upon their retirement at age 50.

    What reasonable person can expect to retire at age 52.4 (avg PFRS retirement age) and think its okay to draw a full pension immediately after only 25 years of work ? The average U.S. male lives to 80, so these 52 year olds could draw a pension, on average, for longer than they actually worked. That doesn’t make any sense unless you think Ponzi schemes make sense.

  29. Dufus said,

    Wow, contributing to your Cadillac healthcare benefits since 2011 ! Life’s a bitch. Do you contribute part of your income to your pension, too ?

    NJ government workers have always paid part of their salary toward their pensions, try fact checking before you make incorrect and false comments Dufus.

  30. Dufus said

    Illinois will make a nice precedent for a state bankruptcy filing, followed closely by NJ and CA. And hey Dufus, ask public workers in Detroit if a court can reduce benefits.
    *********************************************************
    Detroit’s main pension fund plans to hold public meetings in early December to discuss upcoming cuts and an opportunity for retirees to apply for financial help.

    Attorney Ron King says 4.5 percent cuts for 12,000 retirees likely will kick in by March 1 as a key part of Detroit’s bankruptcy. The pension fund also is recouping nearly $200 million from what the city says was excessive interest paid to annuity accounts.

    Retirees at risk for falling into poverty can apply for money from a separate fund. Applications are being mailed and must be returned by Dec. 31.

    The disclosures were made in court Monday.

    Police and fire retirees in a separate pension fund fared better. Their annual cost-of-living payment will be reduced but their pension will not be cut.

    https://www.crainsdetroit.com/article/20141124/NEWS01/141129944/detroit-pension-cuts-expected-by-march-1-heres-how-retirees-can

    NJ has already stopped the annual cost-of-living increases. So your prediction is full of holes DUFUS!

  31. New word of the day dufus?

  32. well it;s time for the fire and police to take a freez on pay.

    right bro,s

  33. Yeah, they’ve had annual +4% wage growth since 2009 vs CPI of 2% a year, so they need a pay freeze for 5 years just to even things out for taxpayers. Plus they need to contribute more than 8-10% to their pensions, and need to increase the healthcare benefit contributions they onl;y just started making in some cases from 2011 – they should be paying same rates as private sector workers for family coverage, not taxpaayer subsidized rates which are unfair to the rest of us. And accumuklated leave up to 6 months at retirement after 25 years also has to be reduced – it is way too generous !

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