N.J. teachers need to be told the truth: Their pensions are in jeopardy | Opinion

Link: https://www.nj.com/opinion/2021/05/nj-teachers-need-to-be-told-the-truth-their-pensions-are-in-jeopardy-opinion.html


The very notable exception is New Jersey’s Teachers’ Pension and Annuity Fund (TPAF), which is by far the single-worst public pension in the Brookings study. TPAF is New Jersey’s largest public pension fund and covers all active and retired teachers. New Jersey’s Public Employees Retirement System (PERS), the pension plan for state and municipal workers, is second-worst but not nearly in the dire predicament of TPAF.

This is what Brookings had to say about TPAF: Under any of their investment return scenarios, TPAF is in “near-term trouble” — meaning near-term insolvency. Brookings projects that TPAF will run out of assets in 12-to-15 years, at which point the $4.5 billion-plus in benefits payments will have to be made from the New Jersey’s perpetually strained state budget. This would be a fiscal disaster for New Jersey and a retirement crisis for TPAF’s 262,000 beneficiaries.

Author(s): Mike Lilley

Publication Date: 5 May 2021

Publication Site: NJ.com