#1.?? The pension funds are hopelessly? insolvent.?? They are run as a Bernie Madoff scheme where money from? younger workers is not invested,?but is instead immediately?paid out? to current retirees.
#2.?? Article 8, Section 2 of N.J.? Constitution says?NJ taxpayers can NOT be forced to bail out insolvent? pension funds, because those pensions were never approved by voters.
#3.? While Governor Christie?and the unions are correct in blaming SOME?of the?pension problems on long gone politicians–Republicans and Democrats–that ?NJ pension funds are broke because they were set up to run as Bernie Madoff schemes since the 1980’s.?? This is because many? employees (a) collect pensions as early as age 52, and (b) pay peanuts into? pension funds with low-pay, part-time jobs for most of their careers, but
collect based on high-pay political jobs they got in the last three years? before they retired.?? Simple solution:? ?No pension? payments until age 66, and cap pensions at $50,000.?? Why won’t? any?Democrat or Republican leader?say so?
By the way, I first stumbled into people gaming the pension funds?when I was a councilman n Atlantic City in the 1980’s.?? I notice that several lifeguards were kept on payroll during most of the winter when the beaches were obviously closed.??? I was told they were “painting the boats”.??? Later, I learned that summer lifeguards were put on the payroll year round during the three years before they retired to “juice up” their pensions.???? Since then, I learned that most public employees with some political influence or knowledge of the system “juice up” their pensions one way or another in last three years to collect far more than they paid in.?? Seth Grossman, Executive Director.