State & Local Government Policy, Business and Technology

With New Jersey's Pensions in Crisis, a Question of Fiscal Priorities

Route Fifty: Gov.-elect Phil Murphy’s desire to reform New Jersey’s pensions should match his predecessor’s enthusiasm to lure Amazon’s new headquarters.

Murphy calls his pension fix “very, very credible,” but has offered few realistic options. He’s also said to “look at the full tapestry” of options for Amazon, but declined to say how he’d weave an offer.

What New Jerseyans know is what’s written in plain English: they’ve offered $7 billion to Amazon and are on the hook for more to $136 billion in pension liabilities. In doing so, New Jersey taxpayers would be giving Amazon a sum that’s more than double its annual contribution to the public pension system—a system that paid out $5.5 billion more in benefits than it accrued last year.

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