How to save for your pension
New Jersey’s pension fund is on the verge of an unprecedented funding gap as it struggles to pay all of its bills.
The state’s pension system is one of the most fiscally strained in the country.
The median income in New Jersey is just $53,000, but most of the state’s retirees pay just under $100,000.
And the state spends $6,000 per New Jerseyan per month for social security benefits.
The New Jersey Pension Benefit Guaranty Corporation is expecting a $1 billion deficit in the coming fiscal year, which ends March 31.
The fund’s $9 billion shortfall was announced in February.
It said the shortfall would be covered through two types of investments: a pension bond backed by the state and an equity investment, which is not subject to the income and expenses limitations that pension funds must abide by.
But New Jersey Gov.
Chris Christie’s administration is facing an uphill battle to raise money for the pension fund, which was once considered a pillar of the New Jersey economy.
The state’s largest union, the United Automobile Workers, has called on Christie to resign amid the state budget crisis.
A pension bond that would be funded through the state would be worth about $12 billion, according to a March 2017 analysis by the New York Times.
That’s about $1.4 billion less than what the fund is facing this year, and Christie’s plan would reduce that deficit to $2.6 billion by the end of 2020.
The governor said in a statement the shortfall is due to a number of factors including declining returns on bond investments, a growing deficit, a slowing economy and the fact that pensioners’ contributions to the fund are higher than they were in recent years.
He also said that he would be able to raise $1,500 per New Yorker per month through a tax credit to help pay for the fund’s costs.
The problem for the state pension fund isn’t just that it’s a major source of funding for the federal government.
It also serves as the backbone of New Jerseyans’ retirement security.
That was a big part of Christie’s economic plan, and he campaigned on the promise that it would help the state grow and prosper.
The pension fund has long depended on a variety of private companies to pay its employees, but now, that will change.
Christie’s pension plan would require them to pay more of their income through their own contributions, which would make the system more expensive.
Christie, who is a billionaire businessman, has said he would like to take the pension funds out of private hands.
He said in the 2016 presidential campaign that he had not given up on the plan.
He has also said he believes that private investors should be able pay their fair share of taxes.
But the governor is facing pressure from unions and some pension fund members to sell the plan and end the subsidies.
The federal government also has a major stake in the fund.
The pension system’s debt is about $4.5 billion, and the federal Government Accountability Office said in February that the federal debt has risen to $17.6 trillion.
The federal government has already borrowed $14 billion to cover the fund for the past four years.
If Christie doesn’t end the subsidy, it could put more pressure on the pension system to cut back on its payments.
A new analysis by Bloomberg Politics said that the pension plan is currently facing a $6 billion shortfall that could reach $7 billion by March 31, 2020.
That means the state is already facing a potential $2 billion shortfall by March 2021.
“The fund faces a difficult fiscal situation,” said Matthew M. Dolan, a senior economist with the National Association of State Retirement Administrators.
“Its solvency is a function of its ability to pay benefits and invest in capital assets.”