In the fight over getting New Jersey to make its pension contributions the New Jersey Education Association (NJEA) is urging its members to contact their legislators to ‘uphold the law’ and offering a Q & A for NJEA members on “The New Jersey Pension Crisis” where they cover the pertinent Qs but their As are mostly wrong or deceptive. My suggestion for more accurate (and helpful) answers to the questions they pose:
How much does the state contribute to the pension system?Whatever they damn well please. There are no funding rules and contribution amounts are manufactured to politicians’ specifications. (nb: the NJEA in their answer left out completely any mention that the contributions also include an amortization of the shortfall which for a variety of reasons is the biggest chunk of those contributions).
Does the state always make its required contribution?
The state never makes its required contribution and even that required contribution is based on willfully deceptive assumptions.
What happens when the state skips payments or makes only partial payments?Nothing – to the state but your pensions will be summarily and arbitrarily reduced when the money runs out.