Moody’s: New Jersey’s Pension Funds Could Run Dry in Just 10 Years

If the state government doesn’t start properly funding its pension system, New Jersey’s two largest pension funds will run out of money in 10 to 13 years, creating a budgetary nightmare, Moody’s Financial Services warns. Based on the state’s failure to make required pension contributions over the past five years, including Gov. Chris Christie’s most recent…

Posted: December 5th, 2014 | Author: | Filed under: 2016 Presidential Politics, Chris Christie, Pensions | Tags: , , , | 1 Comment »

One Comment on “Moody’s: New Jersey’s Pension Funds Could Run Dry in Just 10 Years”

  1. Mike Harmon said at 11:10 am on December 6th, 2014:

    Excellent article showing the ticking time bomb called the pension system collapse. I would just add that I believe the health insurance exchanges are in the first stages of failure.

    Unlike the feds who will deal with our unfunded liabilities with mass inflation, NJ can not print money.

    I am no expert on the situation or the solution but do find Assemblyman Declan O’Scanlon’s writings to be at the forefront of the issue.

    The obvious consequences of inaction include:
    Private and public employees will continue to flee with their pensions and assets to other states upon retirement, or sooner (what do they know).
    Families with long history of NJ residency will be moving to tax friendly states (estate tax and tax on pensions is confiscatory in NJ).
    Due to uncertainty (or perhaps the certainty of the coming collapse) large Corps will continue to either not plant and / or reduce their footprints in NJ due to the coming massive tax increase required to (this is already happening Verizon, Pfizer, Merck, Merrill Lynch, even our utility companies have found or are looking for partners out of state)

    A future member of the CORRUPT DEMOCRAT MACHINE will become Gov and raise taxes by $5-8 billion a year (just a guess about the amount but it will be huge).

    I think the above will be the “not-so-Black-Swan” that moves NJ into Detroit-like-death -spiral with those with money and assets and pensions running out of the state to establish residency elsewhere.

    An “escape tax on sales of homes” will be introduced to tax a final whack at the fleeing former residents.

    I think my estimates are realistic although some may paint them as pessimistic. Tell me where I am wrong.