New Jersey Police and Firefighters Aggravate Pensions Mess
- State agrees transfer of pension management to beneficiaries
- New Jersey funding ratio is 31%, the worst in the country
Police officers are seen on foot patrol in Camden, New Jersey.
Photographer: Timothy A. Clary/AFP via Getty Images
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The massive shortfalls in public pension funds are the single biggest financial challenge for American’s states and cities. So allowing government workers to determine their own benefits -- as New Jersey may soon do -- seems a clear recipe for disaster.
The New Jersey Legislature on Monday passed a bill allowing the police and firefighters to control "how their retirement funds are invested and their levels of contributions and benefits,” according to NJ.com. It passed the Senate by 34-2 and the Assembly by 67-2, giving it broad bipartisan support, and now goes to Governor Phil Murphy, a Democrat, for his signature.