New Jersey Assembly Bill A1308

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Requires Treasurer and Divisions of Pensions and Benefits and Investment Directors to report on status of State-administered pension plans to Legislature by May 15 and November 15 each year.

Impact

The bill is expected to increase the level of disclosure about the fiscal condition of New Jersey's public pension plans. By mandating routine reporting, the legislature will have more consistent and organized updates on funding obligations, investment performance, and overall management of retirement system assets. This transparency may lead to better-informed legislative decisions regarding budget allocations and pension funding strategies.

Summary

Bill A1308 requires the State Treasurer, along with the Directors of the Division of Pensions and Benefits and the Division of Investment, to report annually to the New Jersey Legislature regarding the status of State-administered pension plans. This report is to be provided twice a year, specifically due on May 15 and November 15. The goal of these reports is to enhance transparency and provide detailed insights into the funding obligations and financial health of the pension systems administered by the state.

Contention

While the necessity for increased transparency is widely recognized, there could be debates regarding how these reports are generated and what specific metrics should be prioritized. Potential discussions may arise around the complexities of the pension funding data and the implications of using historical versus current actuarial methods in reporting. The bill does not address future reforms of pension systems but focuses instead on accountability and the reporting structure for existing systems.