Pension and Benefit Crisis

New Jersey has a pension and benefit crisis.  We have the worst-funded public pension system in the nation.  Our unfunded retiree liabilities are $190 billion – five times the size of the state’s annual budget and a fiscal disaster waiting to happen.  Using its unmatched political clout over decades, the NJEA structured the New Jersey’s pension and benefit system we have today.  While the NJEA wants to blame the crisis on elected politicians, the facts show that the NJEA participated in schemes and pension raids that undermined the pension system and gained “platinum-plus” health benefits for its members at little or no cost to them.  The NJEA knowingly acquiesced to underfunding while constantly pushing for enhanced benefits, and has successfully blocked the many attempts to reform the system before it was too late.  The NJEA deserves the primary blame for New Jersey’s pension crisis.

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Research Reports

The Ugly Truths and Hard Facts about New Jersey's Pension Crisis Part 2

Ugly Truths And Hard Facts About New Jersey’s Pension Crisis, Part 2

It’s time for New Jersey’s teachers to wake up to the ugly truths and hard facts about their pensions:

  1. They are vastly inferior to the pensions that the New Jersey Education Association (NJEA) leadership provides for themselves – all paid for by teachers’ dues.
  2. The NJEA is not telling teachers the truth about their pension fund: the Teachers’ Pension and Annuity Fund (TPAF) is in such deep trouble that teachers’ and even retirees’ retirements may be at risk.
  3. TPAF is unfair to new and younger teachers, the majority of whom will lose money participating in TPAF and end up subsidizing the minority of teachers who make teaching a life-long career.

 

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TPAF Report - Pension Case Study

Ugly Truths And Hard Facts About New Jersey’s Pension Crisis, Part 1

A case study of what happens when a special interest like NJEA becomes too powerful.

New Jersey’s past is coming back to haunt the present at a very bad time.

Due to COVID-related shortfalls, Governor Murphy is proposing to borrow $4 billion and raise taxes by $1 billion in order to plug large budget gaps.  Yet the governor is also proposing to spend an equal amount – $4.9 billion of his $40.1 billion budget – to fund the state’s public-sector pensions.  That is 12 percent of the total budget going to shore up New Jersey’s worst-in-the-nation public pension system.

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pension benefit crisis

Job Number One: NJEA’s Leading Role In New Jersey’s Pension Crisis

The New Jersey Education Association (NJEA), New Jersey’s most powerful special interest, has lived up to Powell’s words – much to the detriment of New Jersey citizens.

“The fiscal future of New Jersey is bleak,” concluded the recent bipartisan legislative workgroup. This grim conclusion was largely based on the fact that New Jersey’s public pension and health benefit system is a looming disaster that threatens the state’s future. Under generally accepted national accounting standards, the total amount of the state’s unfunded public pension and health care liabilities is $190.1 billion.

 

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Issue Updates

Political Spending and Influence
The Taxpayer-Funded Political Machine
Political Spending and Influence
The Taxpayer-Funded Political Machine
The Taxpayer-Funded Political Machine

 

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