Thursday, March 24, 2016

Your Number of the Day: -6.61%

-6.61%

It's the percentage of value the NJ pension funds lost through February 2016.

http://www.njspotlight.com/stories/16/03/23/many-happy-returns-alternative-investments-buoy-public-employee-pension-plan/

NJ's pension funds are actuarially assumed to return 7.9% annually.  This 7.9% is what Moody's used when it estimated that NJ's pension funds would start zeroing-out in 2021.  If NJ doesn't meet the 7.9% return then the funds start zeroing-out even sooner and state aid is gutted even sooner.

This comes a few days after Standard & Poor's lowered its outlook for NJ from stable to negative.

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