In recent years, New Jersey has been getting some unwanted attention due to their failing pension payment system. The state has been misappropriating funds for years, which has lead to a growing deficit and a huge concern for those who have paid into the system for years and are now approaching retirement. Governor Chris Christie has made it priority one in recent years to make an annual pension payment to begin correcting the growing deficit. It appears the New Jersey governor has a new pension plan to allow the state to catch up even faster.
Bucking the Tradition in New Jersey
One of the reasons that the pension system in New Jersey is in such terrible shape these days is because both Republican and Democratic administrations in recent years were making underpayments. Each year a payment was short of the required amount, the debt escalated. Years and years of failing short of the bar left the state in a financial hole that many believed could not be corrected. Governor Christie has taken the bull by the horns and signed legislation that will require the state of New Jersey to now make quarterly pension payments. Supporters of the bill say that by making the payments every three months will increases returns year after year.
Restoring a Damaged Image
Governor Chris Christie has been under fire in recent months for a variety of things. Christie has been pushing for gambling in the northern sections of the state but has gotten zero resident support. Christie has been embroiled in the BridgeGate scandal, costing taxpayers million this year. He has even fast tracked a bill allowing him to make money in office writing a new book. The new legislation is a step in the right direction for the governor to make amends with many of the state workers who depend on that money. The debt-laden pension system will get a huge shot in the arm each year with these payments that could result in returns up to $200 million due to the payments coming in four times a year as opposed to once at the end of the year.
The $70 billion pension fund is responsible for supporting over 800,000 retirees and workers, and thanks to the governor it is headed in a positive direction.