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Under Governor Christie’s Reforms, the State’s Funded Ratio Consistently Improves to 90% in 2041

100%

90%

With Reform

80%

70%

Funded Level

60%

50%

40%

Without Reform

30%

20%

10%

0%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041

Fiscal Year

Without action, the total unfunded liability in the system will skyrocket to a shocking total of $183 billion over the next three decades. That means the State will have a total obligation of $121 billion while local municipalities will be looking at a $62 billion burden.

  • The probability of investment returns making up for the shortfall is extremely low. The Pension Fund’s annualized return on investment was just 2.6% over the last 10 years.

  • Additionally, without reform, funding costs for the system will increase more than 370% – or to $13 billion annually – over the next 30 years. This burden will dramatically impact New Jersey’s fiscal health and threaten critical resources for education, municipal aid and countless other priorities.

The changes Governor Christie is proposing will bring solvency and long-term stability to the following pension systems that are part of New Jersey’s Pension Fund: the Public Employees’ Retirement System (PERS), the Teachers’ Pension and Annuity Fund (TPAF), the State Police Retirement System (SPRS), the Police and Firemen’s Retirement System (PFRS) and the Judicial Retirement System (JRS).

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