NJ Releases PFRS Actuarial Report; Pension Fund Remains Stable in Spite of State’s Refusal to Meet Obligations

NJ Releases PFRS Actuarial Report; Pension Fund Remains Stable in Spite of State’s Refusal to Meet Obligations
Posted: Wednesday / 4.22.2015 / 1:45 PM

Tags: PFRS
WOODBRIDGE- New Jersey State Policemen’s Benevolent Association President Patrick Colligan today released the following statement on the actuarial report released by the New Jersey Division of Pension and Benefits detailing the fact that the Police and Firemen’s Retirement System (PFRS) continues to be stable with a funding level of 76.9%.  This stable funding percentage comes in spite of the fact that the additional 1.5% contribution members are being forced to pay every year is not being used to fund their pensions as mandated in the Chapter 78 legislation of 2011 and is instead being funneled to towns and counties across New Jersey to decrease their required contributions.  Chapter 78 increased PFRS members’ pension contribution numbers from 8.5% to 10%, representing the highest contribution of any employee in New Jersey.

The stable funding level is also in spite of the state refusing to meet their mandated funding obligations and flies in the face of Governor Christie’s ongoing efforts to paint the PFRS fund as in crisis.  A review by NJSPBA Trustees shows that if the state met their funding obligations and the 1.5% additional contribution were being used to fund the PFRS as the law states rather than being funneled off to towns and counties to fulfill their own pension obligations, the fund would be operating at an even more robust 88% funding level.

“Our members are out there every day working for our communities and continuing to make the payments required to make sure members and their families have a stable pension fund for their retirement.  Simply put, they are meeting their responsibilities and abiding by the agreed upon terms from when they first agreed to serve the public.  Today’s actuarial report shows quite clearly that it is well past time for Governor Christie to begin meeting his responsibilities.

The PFRS system is stable at almost 77% and the only thing holding it back from operating at an almost 90% funding level is the fact that the governor not only refuses to meet the state’s obligations, but he is also taking the additional 1.5% our members are paying for their pensions and sending it back to towns and counties across New Jersey instead.  This funding level would also put us much closer to restoring COLA for our thousands of retired members who have not seen a cost of living adjustment since 2011.

Today’s actuarial report proves what we have long known, Governor Christie and the state’s actions as they relate to the PFRS funding are nothing short of outrageous.  Our members are literally having an additional 1.5% syphoned directly from their paychecks as a result of Chapter 78 that is supposed to go towards funding our pension and, instead, the governor is continuing to give it back to the towns and counties.  Is it really asking too much to ask for our own money back?  Instead of attempting to deceive the public that the PFRS fund is in crisis to try and score public relations points, Governor Christie should acknowledge the fact that our system is stable and would be in even better shape if he stopped shirking his responsibilities.  Like the governor, our members don’t consider themselves to be wealthy.  The difference is our members actually aren’t.”