NJ state workers need to revise their financial plans

(This post follows yesterday’s announcement that the state Supreme Court ruled that the state is not required to make negotiated pension plan contribution. More at NJ.com).

“The future isn’t what it used to be.”

New Jersey state workers and other participants in the state pension system (like teachers) who were promised solid pensions will receive less retirement income than they expected and it it time to adjust personal financial plans to reflect that reality.

Regardless of what you think about Governor Christe, it is time to recognize that the State of New Jersey made promises to its workers that it will not keep. It is time to deal with that simple fact. This is a one-sided issue. It is not a matter of what is fair to state workers or what workers deserve to receive but only a matter of what the state will pay. The sooner that we recognize this simple fact the state workers will be able to adjust to the reality of their financial future.

But all is not lost for workers who combat this bad news with a stepped-up financial planning respoonse. Millions of Americans have faced significant financial setbacks and still enjoyed a comfortable retirement.


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