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Friday, July 31, 2015

Billions in loans may save pensions or sink New Jersey

The U.S. government should rescue troubled state pension plans with billions of dollars in long-term, low-interest loans, New Jersey Senate President Steve Sweeney proposedon Wednesday.

The trillion-dollar question is whether it would save pensions or sink states deeper in debt. That’s the amount of underfunding public retirement plans collectively face in the 50 states, according to a Pew Foundation study.

“A federal plan to restructure the pension debts would cut annual payments and save the taxpayers money,” said Sen. Sweeney, D-West Deptford.

Sweeney said New Jersey now needs to pay $6 billion a year for the next 30 years to erase its $51 billion in unfunded pension liabilities. He calculated the annual payment would be cut in half to $3 billion with a $50 billion loan from the Federal Reserve at an interest rate of 1-percent a year.



Anonymous said...

typical Democrat "fix" - get that FREE GOVERNMENT $$ - the Party of Liberal Jim

Anonymous said...

The government collected a record 3 trillion dollars in taxes and still can't pay all the entitlements so he should forget a pension bailout.

Anonymous said...

This is just one of MANY examples of how easy it is to spend other peoples money. The politicians years ago offered state and federal employees the moon the sun and the stars and promised to pay LATER. It is now later.

Anonymous said...

Sounds like Christie has done a great job running NJ. No wonder he wants to ruin I mean run the nation.

Anonymous said...

Im 55 so by time i retire ...i will be out on the street..with no Social security, medicare, and penalized for no insurance. Im sure before i retire they will increase the retirement age, steal my 401K and Obamacare will let me die because Im old. You do realize that we are at war with the rainbow agenda, so it will get worse.