How to file an NJ ui claim against the state
The NJ government has approved the filing of a claim against New Jersey for up to $100 million in unpaid pension and health benefits.
The NJ Office of the State Treasurer filed the request with the state Board of Trustees on Monday, saying that the state has “lost an estimated $9.4 billion” in unfunded pension liabilities since its retirement system was privatized.
The claims are part of a $8.5 billion plan to address the state’s retirement crisis.
“While the NJ Board of Supervisors has approved some reforms to our pension system, these reforms are insufficient to address these liabilities,” said New Jersey Pension Authority President and CEO Kevin Schmitt.
“We continue to evaluate the adequacy of the reforms and recommend the Legislature take action.”
“The NJ State Treasurer has approved a claim for $100.1 million, which is $100 billion in unfounded pension liabilities.
This is a significant milestone, but not enough to address our obligations,” said Schmitt, in a statement.
NJ’s pensions are funded by a trust fund of $3.8 billion, with $1.9 billion being invested in a “vacant trust” account.
The state also has a $1 billion fund that is set aside for general state obligations.
The NJ Board will decide in the coming weeks whether to approve or deny the claim.
The proposed settlement, which could be approved by the NJ Legislature as early as Tuesday, would require the state to pay $2.6 billion in unpaid benefits over 10 years.
The plan is part of NJ’s $8 billion budget-balancing package passed last year, with most of the funds to be used on services that are already underfunded.
State Treasurer Jennifer Beutler has been criticized by lawmakers for her handling of the pension crisis, including her decision to delay the implementation of the plan.
This week, NJ House Democrats called on Beutlers leadership to resign.
Governor Chris Christie is scheduled to speak to reporters on Tuesday, and the NJ House speaker, Bob Tisdale, is scheduled for an emergency press conference on Wednesday.
More to come.