New Jersey Gov.
Chris Christie’s proposed pension exclusion for New Jerseyans who make more than $250,000 will add a total of more than a million dollars to the state’s unfunded liability, according to a new analysis.
The New Jersey pension system was already underfunded by more than 30 percent when Christie took office, with a total unfundable liability of more more than more than half a billion dollars.
Christie’s proposal would add more than 50 percent of the state pension system to the $250 million that the state already has, while also raising other state liabilities.
The governor’s office released the analysis Monday, the same day New Jersey announced a $25 million fund that it hopes to open next month.
Christie’s proposal is expected to be announced on Tuesday, the report said.
The state’s existing unfundated pension liability is $25 billion, the NJ Retirement System reported in March.
That means it has $17 billion to meet pension liabilities of about $50 billion.
Christies administration released a draft version of the plan in April, which called for a pension exclusion of $10,000 from NJ residents making more than about $250.
Christie also wants to eliminate a $50,000 cap on the pension exclusion that has been in place since 2012.
Christy’s plan has also raised the possibility that New Jersey’s $25-billion unfundged pension liability could be a bigger liability than it was before the Republican governor took office in January.
But the New Jersey Pension Trustees Association said in an analysis released earlier this year that its estimate was “unlikely.”
The NJ pension trust funds have been underfunded for decades, and Christie’s plan would allow the fund to continue to grow.