By Sean Rutherford
New Jersey’s state pension fund is going broke. Apparently, in 10 years the fund will be empty and those belonging to the Public Employees Retirement System (PERS) and the Teachers’ Pension and Annuity Fund (TPAF) will be out of luck. And when you ask any politician why this is happening, we get variations of this response: “The state’s public employees are bankrupting us with their salaries and benefits plans.”
This is where I draw the line. As a teacher, I have contributed every dime I was supposed to into my pension. Yet, for some reason our state government hasn’t. Where did this all start? Gov. Christine Todd Whitman. She took office in 1994 and decided that in order to achieve a balanced state budget, as required by law, she would reduce the amount of money contributed to the pension fund. In 1997, she decided the state should borrow $2.75 billion from the fund and use it elsewhere. As time went on, she contributed a mere fraction of what was necessary to replace those funds and meet the needs of the pension system. For the next half decade, the state as a whole contributed an average of $23 million per year. The calculations and formulas showed the state should have contributed an average of $600 million per year to keep up with the demand. This trend continued with each new governor that took office: Donald DiFrancesco, James McGreevey, Richard Codey, Jon Corzine, and our current governor, Chris Christie.
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