TRENTON — The state’s pension system is underfunded by nearly $46 billion, a more than 30 percent increase in a year, according to a new analysis released today by the state Treasury department.
The state’s failure to make payments into the fund, investment losses and benefit increases granted nearly a decade ago have contributed to putting the state on an unsustainable path, Janet Cranna, an actuary with Secaucus-based Buck Consultants, said at a presentation to state pension boards today.
The unfunded liability, assessed at $45.8 billion as of June 30, 2009, is the gap between the state’s investments and what it has promised to workers. The gap had been $34.4 billion a year earlier.
(Hell! It must be $60billion by now, February 26, 2010! Time to move out before the state implodes!)
The pension funds pay benefits for about 700,000 current and retired state and local workers, firefighters, police officers, judges and teachers. Lawmakers are working on bills that would curtail benefits for future workers and require current workers to pay for a portion of their health care benefits.
Union workers and independent analysts fault state policy for the bulk of the problem, because state lawmakers and governors of both parties for years have failed to make required contributions. Since 2004, the state has put in about $2.4 billion of the nearly $12 billion required contributions.
A proposed bill would put a constitutional amendment on the ballot asking voters to require the state to fund its pensions.
The pension fund dropped $17 billion to $66 billion over the year that ended June 30, 2009.
State Senate and Government Jokers need to be lynched, shot or set adrift!
FairlyUnbalanced
