NJ Public Pension - Slow Motion Implosion

[mamboni]

Behind Fraud Charges, New Jersey’s Deep Crisis

By RICHARD PÉREZ-PEÑA

New Jersey got in trouble with federal regulators this week for misrepresenting the health of its pension funds. But the bigger problem may be what the state was trying to hide: a long-brewing crisis in its ability to pay retirees.

Experts say that governors and legislators, Republicans and Democrats, have all contributed to the problem by refusing to put state money into the funds as they should have. And even if benefits are cut and taxes raised, they said, there is no obvious fix in sight.

“The whole political culture evolved where the purpose in Trenton was to spend and defer the problems until later,” said James W. Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University.

The state’s most recent report said that as of June 2009, the pension funds should have had assets of $112 billion to meet their future obligations, but had only $66 billion — one of the largest shortfalls, known as unfunded liability, in the country. The situation is probably worse today: The state is supposed to contribute about $3 billion a year to the funds, but amid huge budget deficits and spending cuts, it is in the second consecutive year of contributing nothing.

more here: http://www.nytimes.com/2010/08/20/nyregion/20jersey.html?_r=1

[Book]

the pension funds should have had assets of $112 billion to meet their future obligations, but had only $66 billion — one of the largest shortfalls, known as unfunded liability, in the country.

http://www.teachwithmovies.org/guides/animal-farm-DVDcover.jpg

Here is the big newsflash: No pension, including Social Security, is "secured" by any real assets. Not one. At the end of the novel Animal Farm the old workhorse is seen riding to his Pasture Retirement in the back of a truck with a sign "Glue Factory".

Overnight the federal "pensions" of the USSR disappeared...poof!

http://www.toktali.com/blog//wp-content/gallery/old_posts/homeless.jpg

[mamboni]

the pension funds should have had assets of $112 billion to meet their future obligations, but had only $66 billion — one of the largest shortfalls, known as unfunded liability, in the country.

http://www.teachwithmovies.org/guides/animal-farm-DVDcover.jpg

Here is the big newsflash: No pension, including Social Security, is "secured" by any real assets. Not one. At the end of the novel Animal Farm the old workhorse is seen riding to his Pasture Retirement in the back of a truck with a sign "Glue Factory".

Overnight the federal "pensions" of the USSR disappeared...poof!

http://www.toktali.com/blog//wp-content/gallery/old_posts/homeless.jpg




Yep! Public pensions are the BIG lie of the social welfare state. Yet, talk to teachers and other public employees and it is abundantly clear that their pensions are sacrosanct and they have absolutely no doubt that they will recieve their juicy pensions; they could care less about budget deficits and crushing taxes on the rest of us: "It's owed to us!!!!"

[RJB]

I would bet the interest on the state and national debt will never be considered an unfunded liability.

[Ares]

Yep! Public pensions are the BIG lie of the social welfare state. Yet, talk to teachers and other public employees and it is abundantly clear that their pensions are sacrosanct and they have absolutely no doubt that they will recieve their juicy pensions; they could care less about budget deficits and crushing taxes on the rest of us: "It's owed to us!!!!"

Same horse sh*t I hear from my wife's grandfather. 80 something, and has probably used up double or triple of what he's put into social slavery or Medicare. I've had a number of debates with him and let him know exactly that the country and todays youth owes him NOTHING. I said if it were up to me, you'd be entitled to what you put in, and I would close the damn thing down. No generation should be forced to pay the retirement of the previous generation. Especially not at the barrel of a gun.

[Silver Shield]

Wake me when the paper ponzi scheme is done, so I can move on...

[Twisted Titan]

The state’s most recent report said that as of June 2009, the pension funds should have had assets of $112 billion to meet their future obligations, but had only $66 billion — one of the largest shortfalls, known as unfunded liability, in the country. The situation is probably worse today: The state is supposed to contribute about $3 billion a year to the funds, but amid huge budget deficits and spending cuts, it is in the second consecutive year of contributing nothing.

When the beloved Minions of The State come for "their share" only to find a empty Lockbox.


Oh yes .........There will be Blood