Buffer Pirates

I submitted my question on Monday giving the financial people time to think up an answer. This is the best they could do:

My guess is that this answer came from the accountants (Suplee, Clooney & Company) and something was lost in translation.

Yes the contributions payable in April are based on a valuation from two years ago but it is not any March 31 valuation but rather June 30 which is the plan year.

And that contribution number is set which is why it is almost two years old. Actuaries do not get their reports done the day after the year ends. The June 30, 2020 valuations are not out yet and they have been coming out later each year. The June 30, 2019 valuations came out April 23, 2020 and included the amounts localities had to pay by April, 2021.

Retro bills? Buffers? Has the state ever sent a retro bill for a pension payment?

And as for ‘buffers’ they happened to be $150,000 for PERS and $316,195 for PFRS for 2021 but it was all over the place in prior years with no ‘buffers’ about half the time.

Then there is the check registry which matches the state website billings but the budgets under expenditures show additional payments over the years. As Finance Director Bibi Taylor observed: “there is no way you can spend that money other than payment to the State of New Jersey, Department of Treasury, Division of Pension and Benefits.” But Union County apparently found a way and the question remains as to who got, or will get, that extra $2 million.

Full Q&A:

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4 responses to this post.

  1. […] This sounded like bullshit at the time: […]

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  2. […] This sounded like bullshit at the time: […]

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  3. […] Monmouth, and Union Counties do put in a buffer. This is problematic since pension contributions are exempt from the tax levy cap and inflating […]

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  4. […] Monmouth, and Union Counties do put in a buffer. This is problematic since pension contributions are exempt from the tax levy cap and inflating […]

    Reply

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