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Where has our pension money gone?

Unveiling a 20-year saga of NJ public workers subsidizing tax breaks, revealing the impact on pensions, and the consequences of politicians’ financial choices. Learn the troubling truth behind where pension money has vanished over two decades.

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Where has our pension money gone?

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  1. Where has our pension money gone? The Class War Over Pension Funding in New Jersey, 1995-2015 Stewards Meeting December 1, 2015

  2. NJ: 20 Years of Public Workers Subsidizing Tax Relief for the Wealthy Between FY ’96 and FY ’03, the Whitman income tax cuts cost NJ between $800 million and $1.8 billion per year. The primary beneficiaries were those making over $150,000 per year. Citizens for Tax Justice 6/03

  3. McGreevey/Codey/early Corzine • McGreevey and Codey only made $300 million in total payments (and also put no new money in through 2005), but they at least passed an income surtax on the wealthy. • Corzine makes $1 billion payments in 2007 and 2008—the only years since 1999 that more than half of the required payments were made. • Then comes 2009.

  4. The rest of Corzine: we pay for Wall Street’s recklessness • Corzine puts $100 million into pension the rest of his tenure--$4.6 billion short of what’s needed. • 2009 allows Local Government holidays • 50% of payment in 2009 • 60% of payment in 2010 • 80% of payment in 2011 • 100% of payment in 2012 • No shared sacrifice from the wealthy

  5. What’s it mean for Chris Christie? • Christie has skipped $15.1 billion in payments to state pensions • Massive cuts in aid to localities • Now he says there’s no money

  6. Where did this year’s payment go? • The difference between what Christie proposed to put in the budget and the total payment in Chapter 78 was $1.8 billion.

  7. And it would be worse if we hadn’t stopped more from happening! • Christie proposed a 10% income tax cut in March 2012. • Sweeney countered with an income tax cut/property tax cut hybrid. • Both would have blown another billion dollar hole in the budget.

  8. And they’re not done! • Democrats and Christie are reportedly talking about a deal to replenish the state’s Transportation Trust Fund that would: • Increase the gas tax • Cut the estate and inheritance taxes that are overwhelmingly paid by the wealthy

  9. This is why your retirement security and jobs are at risk • Whitman’s tax cut for the wealthy,1997—2003 • Stock market crash caused by illegal, predatory, and wildly irresponsible speculation by Wall Street, 2009—?? • Christie’s massive corporate giveaways, 2010—present • Christie’s use of your pension fund as a political piggy bank on Wall Street, 2010—present

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