Were these numbers any different in 2019? Did NJ have a well funded retirement fund in 2019?
The Pew data has for Percent of total Pension obligation funded in 2019:
71% for 50 states combined
59% for Massachusetts
44% for Connecticut
40% for New Jersey
39% for Illinois
69% for Texas
72% for California
78% for Florida
I expect most of these are higher now.
Coincidence a lot of the expenses are on offs like road construction or school buildings. The inflation rate is 6 to 7% on one-offs.
Unfunded pension costs are high in some states [percent of state personal income in 2019]:
8% states collectively
8% Massachusetts
19% Illinois
14% Connecticut
25% New Jersey
Illinois [percent of state personal income]:
Debt was steady at 5% from 2003 to 2020.
Unfunded pension costs increased from 9% in 2003 to 19% in 2019.
Unfunded retiree health care costs decreased from 9% in 2010 to 8% in 2016.
Connecticut [percent of state personal income]:
Debt increased from 7% in 2003 to 9% in 2020.
Unfunded pension costs increased from 6% in 2003 to 14% in 2019.
Unfunded retiree health care costs decreased from 11% in 2010 to 9% in 2016.
New Jersey [percent of state personal income]:
Debt was steady at 7% from 2003 to 2020.
Unfunded pension costs increased from 0% in 2003 to 25% in 2019.
Unfunded retiree health care costs increased from 14% in 2010 to 16% in 2016.
data from https://www.pewtrusts.org/en/research-and-analysis/data-visualizations/2014/fiscal-50#ind4
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Well, @laffisloon nudged me to look a bit deeper at TX retirement funds fundedness.
This TC State Comptroller report, 2019 has info that clarified some stuff.
Defines funded ratio, an acceptable level, and amortization period.
{ The funded ratio is a planās assets divided by its liabilities, expressed as a percentage.
Although public pension plans typically aim to achieve full funding (i.e., a 100 percent funded ratio) in the long run, the traditionally accepted standard for a reasonably healthy plan is 80 percent or more.
The amortization period is an estimate of when a plan will become fully funded, based on its contribution rates and investment returns.}
LOLOLOL:
{. (Exhibit 3); two have āinfiniteā amortization periods, meaning that, based on their current actuarial assumptions and contribution rates, they will never have enough money to pay for the current and future retirement benefits they owe.}
Imagine that.
LOLOLOL:
Based on PRB standards, neither TRS nor ERS is actuarially sound, with amortization periods of more than 30 years. The amortization period for TRS has been increasing since 2013 when it was at 28 years, while ERSā has been āinfiniteā for all but two years since 2008.}
And:
TX has reduced its funding of pensions since 2008. This exposes the recipients to more risk.
Iām gonna conclude again, that TX is managing the state retirement funds ā¦ āOkā.
Mostly cause I donāt control any thing related to the funding ratios.
I vote, and thatās the extent of my control.
TX defines āacceptably fundedā as 80%, and TRS is āabout 80%ā.
ralph
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