SEPTEMBER 23, 2015, 7:20 PM LAST UPDATED: WEDNESDAY, SEPTEMBER 23, 2015, 9:37 PM
BY DUSTIN RACIOPPI
STATE HOUSE BUREAU |
THE RECORD
The investments made by New Jersey’s pension funds fell short of targets and well below the double-digit gains of recent years, but it still outperformed benchmarks, state officials said Wednesday.
And amid sustained criticism from unions and some legislators over increased spending on alternative investments – like hedge funds and private equity funds – the state’s investment returns were driven largely by those non-traditional accounts, officials said.
But the returns into the public employee pension fund aren’t enough to keep up with the flow of cash out every year to pay retirees, underscoring the need for greater contributions from the state, those officials said. Governor Christie has cut the state’s contributions the last three budgets amid declining revenues to the state, but his reduced payments compounded years of partial contributions to the fund by prior administrations, creating an unfunded liability today of between $40 billion and $80 billion, depending on the accounting source.
https://www.northjersey.com/news/nj-s-pension-investments-fall-short-of-targets-1.1416355
Who assumes a 7.95% annual return anymore? That’s patently absurd when 30 year US treasuries are yielding under 3%
So the NJ Pension funds paid out over $8 BILLION in the 12 months through June this year, but they only took less than $3bn in contributions from employees… put in a buck and get out almost three? What kind of math is that? That’s a ponzi scheme