CARUSO: HEADS SHOULD ROLL AS A RESULT OF PENSION FUND LOSSES

By horatio

JOSEPH CARUSOWAYNE, NJ

201-806-7309

Legislators Lack of Business IQ Is Appalling

WAYNE NJ -Joseph Caruso, a local businessman, finance chairman for the Bergen County Republican Organization and possible General Assembly candidate in District 40 said that the lost of $23 billion from the state pension fund is unforgivable and that the legislature should take some responsibility for allowing such huge losses of taxpayer money and the possible harm that is being placed on retirees.

It was also recently reported that the state pension board invested nearly $150 billon in three risky hedge funds - each time investing $49.5 million - just under the limit that forces public disclosure of the investment.

"If something of this magnitude occurred in the private sector, people would be fired and an investigation would be launched immediately to determine who is responsible for the ineptitude," said Caruso, a Wayne resident. "Unfortunately, this is New Jersey where billions of taxpayer dollars are wasted every year and no one in Trenton seems to care enough to ask any questions."

Much of the state's financial problems said Caruso stem from the fact that most lawmakers fail to understand basic business concepts and have no idea how to protect the public's money, prove to have real accountability, adequate oversight and plan for market downturns.

"The professional politicians that voters send to Trenton have a very limited business IQ. They don't understand business or investment strategy and are consequently led around by so called experts who are making very bad investment decisions for taxpayers," added the businessman.

"It is incredible that $23 billion has disappeared, people's pensions are being jeopardized and taxpayers will have to make up for the lost money - yet there is no call for an investigation from Trenton lawmakers," said Caruso.

Caruso, who manages America's leading shareholder relations firm, said if a publicly traded company had the fiscal track record of New Jersey, "shareholder groups would be coming out of the woodwork to dethrone management and install competent executives. That's what taxpayers should be doing in New Jersey - getting rid of the people we elected to represent our interests. Obviously, they are doing a poor job."

Caruso said the fact that those responsible for managing the state's money should be held personally responsible for their failures; better oversight needs to be implemented, a recovery plan involving a minimum percentage investment in stable assets must be mandated.

“If we let institutions like the pension system go bust, there will be dire consequences to an already weakened state economy. Those dependant on public pension benefits will need additional assistance from the state, adding additional burdens on the already cash strapped government,” said Caruso.

"It's not enough for pension managers to say 'sorry we lost the money in a bad market.' That's not good enough. The reason we have professional money managers is to protect taxpayers from bad markets; not to make excuses. It’s time to act responsibly, it’s time to put real, overall pension reform on the fast track," said Caruso.

HORATIO can be reached via email at thom55@verizon.net.

Related topics: Joe Caruso, Pension Fund

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