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N.J. pension fund is underfunded by $46B, as gap continues to grow
By Lisa Fleisher/Statehouse Bureau
February 25, 2010, 2:25PM
TRENTON — New Jersey’s pension system is underfunded by nearly $46 billion, a more than 30 percent increase in a year, and as a result the state’s annual bill has grown to $3 billion, according to a new analysis released today by the state Treasury department.
The state’s decision to skip or reduce annual payments, investment losses and benefit increases granted nearly a decade ago have contributed to putting the state on an unsustainable path, Janet Cranna, an actuary with Secaucus-based Buck Consultants, said at a presentation to state pension boards today.
“We heard this last year. We knew that something needed to be done,” said Ron Winthers, a gubernatorial appointee to the Public Employees Retirement System board. “We’re coming back this year, and we’re in the same position. The bottom line is you’ve got to pay into this pension system, and it has to start now.”
The unfunded liability, assessed at $45.8 billion as of June 30, 2009, is the gap between the state’s investments and what it has promised to workers. The gap had been $34.4 billion a year earlier. The numbers do not address the state’s health care benefits liability.
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https://www.nj.com/news/index.ssf/2010/02/nj_pension_chris_christie_stat.html
