“For decades, the same old politicians in New Jersey have mismanaged and underfunded our pension funds. They’ve broken promises and cut deals to reward special interests and insiders instead of fixing the problem, and that’s why our pension funds are in crisis.”
New Jersey has the worst funded pension system in the country, which is a result of this governor and other Trenton insiders choosing to provide for the well-connected, rather than fulfill their obligations. Twelve years ago, Phil Murphy chaired the first commission to evaluate the state’s pension system in light of a growing unfunded liability. The commission recommended, first and foremost, that the state must meet its obligations and respect the collective bargaining process. These are the first principles Phil will bring to the issue as governor.
Trenton insiders ignored these recommendations and today, the problem has only grown worse. Phil is committed to getting our pension funds back on track to solvency — starting with the state living up to its commitments. As Phil said in 2005, when Governor Codey appointed him to chair an effort to address our pension problems, “a constitutional amendment guaranteeing state pension contributions should be part of the solution – but the solution must be comprehensive and ensure a reasonable payment schedule.”
Phil has also led the effort to boost the pension funds’ returns by calling on the state to divest from private equity and hedge funds. These investments have cost us hundreds of millions in fees while delivering only middling results. Phil will stop this practice, and ensure that pension fund dollars are put to work for the people who earned them, not for Wall Street.