- The New Jersey state pension system is comprised of seven public service pension funds.
- As of January 2018, that State of New Jersey Pension Fund possessed assets that covered 30 percent of outstanding liabilities, below the 40 percent mark that the Rockefeller Institute deems “crisis level”
- The New Jersey State Pension Fund is the most under-funded in America with $124 Billion dollars in debt heading into 2018
- According to the new accounting standards introduced by WNYC, the total pension debt is $253 billion dollars as of 2018. The total state budget for New Jersey is $35 Billion.
- By 2023 the state will be liable for $11.3 billion dollars of pension benefits, amounting to 27 percent of the total budget for the state
- The Urban Institute Pension Report Card gave the New Jersey State Pension Fund a rating of “D”
Taxpayer-funded contributions to government pensions can make up one the largest single elements in a local budget. Manhattan Institute scholars have consistently pushed for governments to reform their pension system and thus avoid the necessity of cutting public services.
Absent significant reforms, unfunded liabilities of state-administered pension plans will continue to grow and threaten the financial security of state retirees and taxpayers alike. The fiscal calamity could be far deeper and prolonged than the Great Recession.
As the world’s population lives longer, it will become increasingly important for plan sponsors, retirement advisors, regulators, and financial firms to focus closely on how older persons fare in the face of rising difficulties with cognition and financial management.
On the basis of its fiscal solvency in five separate categories, Connecticut ranks 37th for fiscal health among the US states—a significant jump from last year’s ranking of 50th.
View the article: Mercatus Center: Ranking the States by Fiscal Condition 2017 Edition
The latest PPD update features:
- Expanded 2016 plan data.
- The creation of a new “Colorado State and School” plan for years 2001 to 2004. Colorado state legislation enacted in 2004 (Senate Bill 04-257) provided for the separation of the Colorado State and School Divisions. To better reflect this policy change, data for Colorado State and School plans are reported as a single entity from 2001 to 2004, and separately from 2005 forward.
View the public plans data: Center for Retirement Research at Boston College: Public Plans Data 2017
- The Washington State pension fund covers 84% of liabilities, with certain subsets of the pension account in over 100 percent funding levels
- The state of Washington currently has 74 billion dollars in assets and 13.8 billion dollars in unfunded liabilities, with an accrued liability of 88.17 billion dollars
- The Tax Foundation ranks Washington #11 in the United States in terms of pension fund health
- Using the new calculation system formulated by ALEC, the Washington State pension has a funding rate of just 31%. This is still middle of road according to these calculations- ALEC uses a risk-free rate for calculating returns on these pensions.
Covering 14 million state and local government employees, public pension plans typically provide lifetime retirement benefits based on years of service and the salary earned near the end of a career. These pensions provide meaningful retirement security to employees covered by a plan for a full career, but offer few benefits to shorter-term employees, a drawback that is becoming increasingly problematic as people change jobs more frequently.