Greenstein, DeAngelo: Pension Shortfall Shows Need for Great-Than-Ever Scrutiny

GROWING PENSION SHORTFALL SHOWS NEED
FOR GREATER-THAN-EVER SCRUTINY OF INVESTMENTS

(14th Legislative District) - Following yesterday's announcement that the state's public employee pension fund has lost more than 25 percent of its value over the current fiscal year, Assemblywoman Linda Greenstein and Assemblyman Wayne DeAngelo said the numbers show the need for pension officials to take a more conservative approach when handling the $58 billion portfolio.

"The stock market's recent downhill slide has led many rank-and-file state workers, much like their private-sector neighbors, to fear that their retirement savings may be in jeopardy," said Greenstein (D-Middlesex/Mercer), who spoke at yesterday's State Investment Council meeting. "However, the problem is compounded by the fact that public employee pensions also are directly funded in-part by New Jersey taxpayers. Pension officials need to take a step back and scrutinize every part of the portfolio to relieve the risk and stress on both worried state workers and over-burdened taxpayers."

According to figures released yesterday by the State Investment Council, the public employee pension fund's current value is $58 billion - down from $82 billion at the end of June. The fund is intended to pay long-term retirement benefits for approximately 700,000 retired government employees and teachers.

"It would be foolhardy to think that the pension fund's portfolio would be left unscathed in light of the market meltdowns occurring around the world," said DeAngelo (D-Mercer/Middlesex). "But New Jersey can and should do everything in its power to try to insulate rank-and-file state workers from the fallout. Charting a more conservative and careful approach to managing their retirements would be a logical place to start."

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