Virgil
11-26-2008, 12:21 PM
http://globaleconomicanalysis.blogspot.com/2008/11/state-of-new-jersey-is-insolvent.html
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The state of New Jersey is insolvent. Bankrupt might be a better word. New Jersey is $60 billion in the hole on pension funding and the Governor is planning on skipping payments in a "pension payment holiday" until 2012 so as to not increase property taxes. To top it off, the ongoing plan assumptions are 8.25%. Sorry NJ, that simply is not going to happen.
The Star Ledger is reporting New Jersey pension funds lost $23B so far this year.
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http://www.nj.com/news/index.ssf/2008/11/pension_funds_lost_9b_in_octob.html
New Jersey pension funds lost $23B so far this year
by Dunstan McNichol and Claire Heininger/The Star-Ledger
Thursday November 20, 2008, 7:50 PM
New Jersey's pension fund has lost more than $23 billion this year, dropping to its lowest level since 2003 as a collapsing financial market battered its investments, a new state report shows.
The latest losses -- nearly $9 billion in October, and another $3 billion so far this month -- mean the fund is now worth $57.8 billion, or less than half the $118 billion in benefits it is due to pay out over time.
"I don't think any of us in the division have ever seen anything like it," Bill Clark, Director of the state's Division of Investments and the chief steward of the fund, said today as presented the report to the State Investment Council in Trenton. "I'm not sure anyone alive has seen anything like it."
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The state of New Jersey is insolvent. Bankrupt might be a better word. New Jersey is $60 billion in the hole on pension funding and the Governor is planning on skipping payments in a "pension payment holiday" until 2012 so as to not increase property taxes. To top it off, the ongoing plan assumptions are 8.25%. Sorry NJ, that simply is not going to happen.
The Star Ledger is reporting New Jersey pension funds lost $23B so far this year.
<snipped>
================
http://www.nj.com/news/index.ssf/2008/11/pension_funds_lost_9b_in_octob.html
New Jersey pension funds lost $23B so far this year
by Dunstan McNichol and Claire Heininger/The Star-Ledger
Thursday November 20, 2008, 7:50 PM
New Jersey's pension fund has lost more than $23 billion this year, dropping to its lowest level since 2003 as a collapsing financial market battered its investments, a new state report shows.
The latest losses -- nearly $9 billion in October, and another $3 billion so far this month -- mean the fund is now worth $57.8 billion, or less than half the $118 billion in benefits it is due to pay out over time.
"I don't think any of us in the division have ever seen anything like it," Bill Clark, Director of the state's Division of Investments and the chief steward of the fund, said today as presented the report to the State Investment Council in Trenton. "I'm not sure anyone alive has seen anything like it."
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