Will new accounting rules force NJ to put billions more into pension payments?
The national Government Accounting Standards Board is poised to approve new rules requiring pension systems to calculate their return on investment more conservatively. The change will require New Jersey to more than double its current $44 billion net pension liability on official balance sheets and could force the state to increase pension contributions in future budgets.
“If New Jersey’s pension contributions have to comply with the new GASB standards, the state would have to put $5 billion into the system in Fiscal Year 2016, not $3 billion,” said Frank J. Abella Jr., chief executive officer of Investment Partners Asset Management Inc., indicated to state Treasury officials after last month’s State Investment Council meeting. (Magyar, NJ Spotlight)
they need to it;s the law.