In 2005, New Jersey put either $551 million, $56 million or nothing into its pension fund for teachers.
New Jersey recorded the $551 million contribution for the 2005 fiscal year in a bond offering statement at the end of last year. The $56 million figure appeared in an audited financial statement for the fund.
Treasury officials said that everything had been done legally. But they confirmed in a recent interview that the correct amount for that year’s pension contribution was zero, which appeared in an actuarial report. They explained that the conflicting figures elsewhere had been inflated by other items, like health care contributions.
If New Jersey violated federal securities, tax or other rules, it could be forced to make up some of the contributions. The Internal Revenue Service has very specific rules against mixing pension money with money for other uses, like health care. Federal securities law also requires bond issuers to provide complete and accurate financial information.
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April 4, 2007 - 11:24 PM on April 4th, 2007
This should be VERY interesting. Their new Democratic Governor wasn’t in office 3 months before raising taxes, NOW that they may have to make that money back, New Jersey residents will be looking at even HIGHER TAXES!!.