NJ Watchdog: New Jersey ranks worst in funding state pensions

Report: New Jersey ranks worst in funding state pensions

New Jersey is the nation’s biggest pension deadbeat, ranking last among states in funding public retirement plans, according to a study released today.

From fiscal years 2001 to 2013, New Jersey paid only 38 percent of its annual required contributions, or ARCs, stated the National Association of State Retirement Administrators report. During that 13-year span, New Jersey shortchanged its pensions by more than $23 billion.

The study also found:

• New Jersey was one of two states making less than half of its ARCs. The other outlier was Pennsylvania at 41 percent.
• All but six states paid at least 75 percent.
• The majority of states substantially complied with their obligations. The average retirement plan received 89 percent of its ARCs.

In New Jersey, pension underfunding under a succession of governors – Democrats and Republicans alike – has led the state to the brink of fiscal calamity.

The actual unfunded liability of the state retirement system exceeds $170 billion, according to a New Jersey Watchdog analysis based on official numbers from the state Treasury. That figure includes:

• $82.7 billion in unfunded liability for the pension plans of state workers.
• $53 billion in unfunded health benefits for state retirees.
• A $20.7 billion shortfall for the pensions of local public employees who collect retirement checks from the state.
• $13.8 billion to cover the post-employment benefits of those local workers.

The full story is online at http://watchdog.org/205505/nj-worst-funding-state-pensions/.