New Jersey Pulls Back Pension Payments

As reported by Bloomberg News, Governor Chris Christie recently broke a pledge to bolster New Jersey’s underfunded public-employee pension system.  As described,

Under a law Christie signed in 2010, New Jersey was to make higher pension payments each year through fiscal 2018 to help make up for a decade of skipped contributions. Christie said this month that the extra contributions won’t happen this year or next after his revenue targets fell short by $2.75 billion.

In Maryland, Governor O’Malley’s budget reduced additional money set aside to pay down the pension system’s unfunded liabilities from $300 million to $200 million to support the general fund this legislative session.  For more information, see our Conduit Street article, Governor’s Budget Repeats Cut in Pension Funding.

For more information on New Jersey and national trends in pensions, see the full story from Bloomberg.