Unfunded Pensions Force Property Tax Hikes: New Jersey faces highest allowance gap in nation

Patriot Action Network The State of New Jersey disclosed on Thursday that the unfunded pension liability for state government employees grew from $45.8 billion to $53.9 billion in 2009, an increase of 18 percent.

New Jersey public employee pension funds currently cover some 800,000 workers in seven different pension funds impacting a wide range of government employees, including teachers, police officers, firefighters, judges and a mixed bag of bureaucrats.

The Philadelphia Inquirer noted that New Jersey residents have the largest unfunded pension liabilities in the nation.

New Jersey pension funds now have only 62 percent of the funds necessary to pay future promised obligations, down from 66 percent the year before.

To put this in perspective, pension experts generally recommend that state pensions should be funded to at least 80 percent of their current and future obligations.

New Jersey also has an unfunded obligation of $66.8 billion for health-care costs, in addition to the $53.9 billion unfunded pension liability.

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