Gannett New Jersey reports that the fund has a $3.5 billion shortfall, due in part to investment losses and missed contributions.
According to Gannett, the state’s Teachers Pension and Annuity Fund (TPAF) filed a similar suit last year seeking nearly $1 billion in payments skipped by the state. The TPAF and Public Employees Retirement System reported a combined $8.5 billion shortfall earlier this year (See Two Garden State Funds Facing $8.5B Funding Shortfall ).
The state has made virtually no payments to the pension funds since 1997, Gannett said. At that time, the funds were doing well. Since then a downturn in the stock market and increased retirement benefits helped create the shortfall.
The state’s Treasurer’s office had no comment on the suit.