[movermike] movermike: New Jersey Pension Fund and Social Security

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Posted by movermike:
New Jersey Pension Fund and Social Security
http://www.movermike.com/posts/1175706910.shtml


   What's happening to the [1]New Jersey pension fund for teachers,
   reported by the NYT, (by subscription or registration only), is a
   microcosm of the U.S. Social Security entitlement program.

     New Jersey has been diverting billions of dollars from its pension
     fund for state and local workers into other government purposes
     over the last 15 years, using a variety of unorthodox transactions
     authorized by the Legislature and by governors from both political
     parties.

     [...]

     State officials say the fund is in dire shape, with a serious
     deficit. It has enough to pay retirees for several years, but
     without big contributions, paid for by cuts elsewhere in the
     stateâs programs, higher taxes or another source, the fund could
     soon be caught in a downward spiral that could devastate the
     stateâs fiscal health. Under its Constitution, New Jersey cannot
     reduce earned pension benefits.

   Social security has the same future and the solution is to raise SS
   taxes, increase the retirement age and/or cut benefits.

   New Jersey may have a $56 billion deficit. If New Jersey is drawing
   scrutiny from Congress,

     Members of the United States Senate have asked the Government
     Accountability Office for a review of public pension operations and
     whether new rules are needed.

   the SEC

     in New Jersey like San Diego, officials put false information about
     the pension fund into bond offering statements. After an
     investigation, the S.E.C. found it amounted to securities fraud.

   and the IRS, in New Jersey

     like San Diego, the city was using its pension fund to pay other
     expenses, like retiree health care costs. The money in pension
     funds gets preferred tax treatment and must be spent solely on
     pensions.

   then Social Security should face the same hard looks by the respective
   agencies.

   [2]New Jersey [3]pension fund for teachers [4]Social Security [5]Mover
   Mike

References

   1. http://www.nytimes.com/2007/04/04/nyregion/04pension.html?_r=1&th&emc=th&oref=slogin
   2. http://technorati.com/tag/New+Jersey
   3. http://technorati.com/tag/pension+fund+for+teachers
   4. http://technorati.com/tag/Social%20Security
   5. http://technorati.com/tag/Mover+Mike