NJ WATCHDOG: 7 deadly sins of NJ pensions = $104-B debt

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The fiscal future of New Jersey and Gov. Chris Christie’s presidential ambitions hang in the balance as Trenton finally faces the $104 billion deficit in the state’s retirement system.

One key is whether Christie and the Legislature can agree to plug costly loopholes and stop blatant of public pensions. If not, many public officials will continue to gorge themselves at the public trough while others make sacrifices.

A long line of governors and legislative leaders — past and present, Republicans and Democrats — share the blame for decades of unaffordable promises and political favors. As a result, pensions are underfunded by $51 billion, plus the state faces a $53 billion shortfall from retiree health benefits, according to the latest official numbers.

Joseph Blaettler is a poster boy for a governmental retirement system gone wild.

At age 46, Blaettler retired as Union City deputy police chief. Collecting nearly $135,000 a year from his pension, he will rake in more than $4.5 million by age 80, his statistical life expectancy. And that figure does not include the cost of his retiree health benefits.

“Politicians created this system, and I simply accepted what they gave me along the way,” Blaettler told New Jersey Watchdog. “If taxpayers want to get angry with someone, they need to ask their local and state politicians how they allowed the system to get to the point it is at.”

Christie is expected to propose a new round of reforms next month based on the findings of a special commission he picked to study the dilemma. The question is whether state officials can learn from their past mistakes.

During the past four years, New Jersey Watchdog investigations have focused on the “Seven Deadly Sins of New Jersey Pensions.” Reporter Mark Lagerkvist revisits the retirement shams, schemes, double-dipping, disability abuses, benefits giveaways, six-figure pensions and deadbeat behavior by state leaders.

The story is now online at http://watchdog.org/171777/deadly-sins-pensions.

NJ WATCHDOG INVESTIGATION: Attorney General's 23 Double-Dippers Pocket Millions

FOR IMMEDIATE RELEASE:

One-Day 'Retirements?' There Ought to Be a Law!

NJ ATTORNEY GENERAL'S 23 DOUBLE-DIPPERS POCKET MILLIONS; MOST RETIRE FOR ONE DAY, THEN COLLECT PENSIONS FOR LIFE

Edgar J. Hess "retired" from the New Jersey State Police at age 50, but he never left the Attorney General's payroll. The next day, he began work at a state unit that investigates corruption.

Without really retiring, Hess has collected $712,000 in state pension checks since 2002. He currently gets $196,000 a year – an $80,000 pension plus a $116,000 salary as a lieutenant state investigator.

Hess is one of 23 double-dipping investigators and supervisors who work for Attorney General Paula T. Dow and her Division of Criminal Justice, a New Jersey Watchdog investigation revealed. In addition to their salaries, they draw pensions as retired employees of the Attorney General. Most retired for only one day.

Collectively, the 23 "retirees" receive $3.77 million a year – $1.56 million a year in pension pay plus $2.21 million in state salaries. On average, they each pocket $164,000 a year – $96,000 in salary and nearly $68,000 from pension. 

The retirement schemes are typically inside jobs – deals that quietly slip through loopholes in pension law. Like Hess, many retirees are rehired so quickly they never miss a payday from the Attorney General, who is in charge of both DCJ and State Police.  In the 23 double-dipping cases examined by New Jersey Watchdog:

• 14 officers were rehired the day after they retired.
• Two others were rehired within a week of retirement.
• Only seven officers left the payroll for at least 30 days, as required by state pension rules.

Click here or visit www.njwatchdog.org for the full story.  Investigative reporter Mark Lagerkvist can be reached at Mark@Lagerkvist.net.