Stephen Herzenberg

 

New Jersey Has Modest Public Pension Benefits

While one of the central tenets of repeated calls for major changes to New Jersey’s public pension system is the claim that public employee pensions are overly generous, retirement benefits for the state’s public workers are already among the least generous of all large public-sector pensions in the country, in part because of cuts enacted in the pension reforms of 2011.

How to Dig an Even Deeper Pension Hole

In the face of its multi-billion-dollar unfunded pension liabilities, New Jersey would be ill-advised to switch to a transparently inferior retirement plan design such as 401(k)-style accounts. In fact, high investment returns combined with low costs make DB pensions the most cost-effective retirement plans over the long term, which benefits taxpayers and public-sector retirees.