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New Jersey’s pension system debt hits $170 billion

By   /   December 5, 2014  /   No Comments

 

Governor's Office/Tim Larsen

Gov. Chris Christie acknowledged New Jersey’s pension woes in his budget address

 

By Mark Lagerkvist | New Jersey Watchdog

The bad news keeps getting worse: New Jersey’s public retirement system faces a $170 billion deficit for pensions and health benefits for government retirees, according to the latest official figures from the state Treasury.

The state pension shortfall doubled under new accounting standards, intended to provide a more realistic fiscal picture. As a result, the reported unfunded pension liability of $51 billion in 2013 expanded to a $103 billion shortfall when the new guidelines from the Governmental Accounting Standards Board took effect this June.

“This is just a financial reporting change and does not materially impact New Jersey’s fiscal position,” said Treasury spokesman Christopher Santarelli.

Instead, the new numbers offer a starker outlook for the state’s existing financial woes.  Here’s a full breakdown of the Treasury’s fiscal figures for its retirement system:

The updated numbers were released as part of revelations to investors for the state’s bond offering to raise money for its Transportation Trust Fund.

“The state’s new disclosures…underscore the significant pension funding challenges that New Jersey faces,” stated a Moody’s Investors Service report yesterday.

Gov. Chris Christie has proclaimed solving the state’s pension dilemma as one of the priorities for his second term in office.

“This is the goal I will dedicate myself to in the remaining years of my governorship,” Christie promised in this year’s budget address.

In August, Christie appointed a nonpartisan Pension and Health Benefit Study Commission to propose reforms.  The panel has yet to offer any recommendations.

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Mark formerly served as staff reporter for Watchdog.org.