The problem facing the State of New Jersey is that both retirement and health care costs have escalated over the past 10-15 years more rapidly than any other State expenditure. There are many reasons for this escalation, but if such trends continue, both the State and its local governments will find it difficult, if not impossible, to meet their employee benefit obligations… – The Pension Study Commission, 1984
The Pension Study Commission was created in 1982 by Governor Kean who issued Executive Order No.7 which established an 11 member pension review commission – the report was released in 1984.
Thirty years later, we are hearing the same song – almost word for word.
Thirty years is not all that long, there are a lot of great songs from 1984 that we still listen to today.
Cyndi Lauper’s “Time After Time” is a timeless classic; U2’s,”Pride -In the Name of Love” is still a regular on radio stations devoted to rockn’roll. Tina Turner’s “Better Be Good to Me” is still a celebratory song for all women; and, of course, the ultimate eighties guy – Billy Idol with his “Eyes Without a Face”. In 1984, Madonna released “Like a Virgin” – and Madonna still looks pretty good 30 years later.
Unfortunately, the same can’t be said for the State of New Jersey –
According to Bloomberg.com, the state is scheduled in 2018 to make a $5 billion payment into the pension fund – more than double what was paid this year.
Chris Christie singing about pension reform is a great cover tune – but no one will probably buy tickets to see it in concert.
The song remains the same when it comes to politicians in New Jersey, and NJ residents have grown deaf because “You end up like a dog that’s been beat too much, Till you spend half your life just covering up”
-Bruce Spinsgteen, 1984
LINKS:
http://www.trentonian.com/general-news/20140202/state-watch-new-jerseys-pension-money-pit
http://blogs.wsj.com/metropolis/2014/02/26/christie-talks-pension-costs-benefits-at-town-hall/
http://www.bloomberg.com/news/2013-03-04/n-j-unfunded-pension-deficit-rises-to-47-2-billion.html
http://www.bloomberg.com/news/2014-02-11/n-j-outlook-fails-to-improve-as-pension-hit-looms-muni-credit.html
http://www.nj.com/politics/index.ssf/2014/02/christie_includes_225_billion_pension_payment_in_new_budget_rules_out_tax_hikes.html
http://www.nj.com/politics/index.ssf/2014/01/steve_sweeney_says_hell_force_a_government_shutdown_if_chris_christie_renegs_on_pension_payment.html