Fuggedaboudit!
Posted on 04/03/2007 6:48:35 PM PDT by Pharmboy
In 2005, New Jersey put either $551 million, $56 million or nothing into its pension fund for teachers. All three figures appeared in various state documents — though the state now says that the actual amount was zero.
The phantom contribution is just one indication that New Jersey has been diverting billions of dollars from its pension fund for state and local workers into other government purposes over the last 15 years, using a variety of unorthodox transactions authorized by the Legislature and by governors from both political parties.
The state has long acknowledged that it has been putting less money into the pension fund than it should. But an analysis of its records by The New York Times shows that in many cases, New Jersey has overstated even what it has claimed to be contributing, sometimes by hundreds of millions of dollars.
The discrepancies raise questions about how much money is really in the New Jersey pension fund, which industry statistics show to be the ninth largest in the nation’s public sector, with reported assets of $79 billion.
State officials say the fund is in dire shape, with a serious deficit. It has enough to pay retirees for several years, but without big contributions, paid for by cuts elsewhere in the state’s programs, higher taxes or another source, the fund could soon be caught in a downward spiral that could devastate the state’s fiscal health. Under its Constitution, New Jersey cannot reduce earned pension benefits.
The Times’s examination of New Jersey’s pension fund showed that officials have taken questionable steps again and again. The state recorded investment gains immediately when the markets were up, for instance, then delayed recording losses when the markets were down.
(Excerpt) Read more at nytimes.com ...
I wonder what happens when the pensions come due?
They’ll blame it on Bush.
The guys responsible will be living in Tahiti with five wives under an assumed name. Few will likely have to pay the piper...
NEVER let corrupt liberals get their hands on YOUR money — most likely you will never see it again. No surprise from the land of Corzine....
It’s time the US Attorney came into the Garden State and kicked some butt. Anyone listening??
Maybe it will help in changing the legilature in Trenton.
Fuggedaboudit!
There will be a huge exodus out of the state.
CA went thru this drill. They issued paychecks which are really IOU’s. Banks will cash the checks out of goodwill but they will not recieve money from the state until it is available. However if the crisis drags on, banks can refuse to cash the state employee and pensioner checks. The consitution of NJ requires these pensions be covered one way or the other. Cuts in other programs and tax increases are the only options which in the long run will destroy the state’s economy. Right now if Gov Corzine fired all the state employees the savings would not even cover the state budget deficit.
Where will they go with no pension money?
In a few years, there won’t be enough money in the entire state of New Jersey to pay for the pensions at the state, county, uniformed services levels, the education system, the interest on the borrowed money and the normal $ 33 billion it now takes annually to run a state of eight million people.
(you do the math).
There is an epic financial implosion that will soon come to pass. That’s on top of the existing massive government corruption, vote fraud, and ever-increeasing taxation at all levels.
That’s why I moved out of state. 52 years was enough for me.
The people with assets are moving out, and immigrants are moving in—most of whom are net “takers” not payers.
To my fellow Garden Staters—make a plan,and get out of Dodge.
New Jersey will be the first Humpty Dumpty state.
I find it distoibing that you question the business practices of the family.
“The phantom contribution is just one indication that New Jersey has been diverting billions of dollars from its pension fund for state and local workers into other government purposes over the last 15 years, using a variety of unorthodox transactions authorized by the Legislature and by governors from both political parties.”
Notice the 15 years? They want to blame this on Whitman.
“There will be a huge exodus out of the state.”
My family escaped last year.
“Nice...when do we get the official crown as Most Corrupt Sate in the Union? Has Louisiana FedExed the Championship Belt to Trenton yet??”
Bad as this is, is it really any different than our Social Security system?
Why should the State of New Jersey give a damn about how much it has ripped off its pension fund contributers? They know that the Feds will be forced to step in and keep it solvent. That’s right new New Jersey — just forget about it! And you should just put some ice on it New Jersey pensioners.
Good one! I'd be laughing more but I'm one of those affected by this "3 card monte" style of bookkeeping. Right before McGreedy got outted (oops, I mean ousted), he wanted to move pension money into a venture fund for stem cell research.
Glad to see all of you leave … I’m trying my best to get back to the “Garden State”.
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