New Jersey’s attempts by the local government to use the pension funds to run Turnpike Company have come under scathing criticism. The actuarial analysis of the funds shows that the state is operating a deficit in the pension funds. Just recently, the State’s proposition not to put all $3 billion contributed by the employees for pension is due to huge deficits the state is currently facing. New Jersey current has a budget shortage of over $11 billion. As such, all the measures that the local government adopts to correct the persistent problem contravene the federal pension funds policies in addition to being short term as opposed to long term. The press release showing that some public officers had more than pension funds account shows the extent of the problem.
The aforementioned problems require swift correction to help the state’s pension to comply with the federal agencies on pension funds in addition to overcoming the impending consequences. The following are some recommendations on what needs to happen with the state’s pension funds.