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/.

CHRISTIE STILL BURDENING MIDDLE CLASS FAMILIES WITH HIS FAILURES SAYS CURRIE

6/25/14

(Trenton) — Today, before a select crowd in Camden County, Chris Christie’s truth-defying narrative took center stage, as the governor denied responsibility for an array of policy concerns.

Notably, to plug a projected $2.75 billion budget shortfall created by Christie's overly optimistic revenue projections, the governor wants to cut planned pension contributions. His approach is to break the promises he made to hard working New Jerseyans, dismiss Democratic proposals, blame others for his mistakes, and then to personalize the state's challenges.

“It's shocking and disturbing that Governor Christie has no proposal to repair New Jersey’s troubled economy, and that he is incapable of accepting responsibility for his actions. In his carefully selected public appearances, he tells a few jokes, and then spins fictional tales that serve his political purposes but not our needs,” said John Currie, Chairman of the New Jersey Democratic State Committee. "Chris Christie needs to stop burdening middle class families with his failures, and start being truthful about the messes he created."

Governor Christie was willing to literally dance around his scandals on late night television earlier this month, but he refuses to acknowledge the severity of federal probes into his administration’s misuse of public funds, and prioritizes Republican campaign activities over New Jersey’s needs.

The fact is, Chris Christie’s policies have seriously undermined New Jersey’s economy, resulting in record six state credit downgrades, with further downgrades threatened, a massive hole in the New Jersey’s 2014 budget, the highest unemployment levels in the region, and a job creation rate that is ranked among the worst in the nation.