We can’t do anything at a local level about already promised pensions, unless the Village wants to challenge final salary calculations used for pensions. We can move all new hires to 403(b) defined contribution plans and ask them to contribute more than 10% of their pay towards their pension. The state pension fund could file for Chapter 9 bankruptcy if their assets are insufficient to meet their obligations. It’s slowing the rate of growth that matters the most, taxpayers are already on the hook for $100bn of unfunded promises made to NJ municipal retirees.
NJ Accrued Pension Liability highest to lowest
Teachers Pension – TPAF Accrued Liability $51.405 Billion Dollars
Municipal Workers – PERS Accrued Liability $45.393 Billion Dollars
Police & Fire Pension -PFRS Accrued Liability $31.732 Billion Dollars
Page 13 from the NJ Pension study Report dated January 2014
