If memory serves correct we had a mayor of a large city hold the mayor's post, a state senator an a State Commission position all providing cushy benefits.
Now the AEI reports:
The short story is that a 2019 go-broke date for New Jersey pensions seems very reasonable.
A report from George Mason University provides the details. The report states:
Pension plans operated by state governments on behalf of their employees are underfunded by an estimated $452 billion according to official reports, with total liabilities of $2.8 trillion and total assets of $2.3 trillion in 2008. However, many economists argue that even these daunting liabilities are understated. Current public sector accounting methods allow plans to assume they can earn high investment returns without any risk. Using methods that are required for private sector pensions, which value pension liabilities according to likelihood of payment rather than the return expected on pension assets, total liabilities amount to $5.2 trillion and the unfunded liability rises to $3 trillion. The ability of governments to pay for the retirement benefits promised to public sector workers runs up against the reality of limited resources.
This will be a great up hill battle. It may not be California but is getting there. An we do not have Referendum, The Legislators and politicians did this with no help from the voters!
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