New Jersey to Cut Public Services and Raise Taxes to Fund Public Employees’ Retirement Systems

Pension Funding Fight Nears a Climax in Deficit-Stung New Jersey

January 20, 2016

Bloomberg - New Jersey has seven retirement plans for public sector workers, teachers and emergency personnel. The primary plan, the Public Employees’ Retirement System, may run out of money by 2024. The state would probably cut services and raise taxes to make the obligations, said Rob Amodeo, head of municipals in New York for Western Asset Management Co., which holds $25 billion of the securities. New Jersey’s individual income taxes are already the sixth-highest in the U.S., according to the Tax Foundation, a Washington-based group. It’s ranked No. 1 for property taxes.