SPECIAL TO NEWJERSEYNEWSROOM.COM
Democrat Governor Jim Florio was the first to use the pension fund as a fallback piggy bank in a time of crisis.
In 1992, facing a budget shortfall, Florio pushed through the Pension Revaluation Act with unanimous support in the legislature, reducing taxpayer contributions to the public retirement plans by $1.5 billion.
This scheme was accomplished through the financial deception of introducing a more optimistic method of evaluating pension system investments. The end result was to make the retirement plans’ finances “look far rosier” than they really were, by lifting the projected rate of return on the fund’s investments to 8.75% from 7%.