FOR IMMEDIATE RELEASE

New Report: New Jersey Taxpayers Face $130 Billion in Unfunded Liabilities for Government Retiree Health Care Benefits

Arlington, VA, January 23, 2020 – In terms of retired public employee health care benefits, New Jersey has greater unfunded liabilities – $130 billion – than every state but California, according to a new report from the American Legislative Exchange Council (ALEC). The new report, Other Post-Employment Benefit Liabilities, 2019, examines the unfunded liabilities in each state for other-post employment benefits (OPEB), which include health insurance, life insurance, Medicare Supplement Insurance and more for retired public employees.

Other key findings in the report include:

• New Jersey’s total unfunded OPEB liabilities per capita exceed $14,000 per resident.
• Hypothetically speaking, New Jersey would need to spend 385% of its general fund to pay off its unfunded OPEB liabilities – the highest percentage of any state.
• In total, states owe more than $1 trillion in OPEB benefits to retired public employees.

Click here to read the report.

“As OPEB liabilities continue to grow, states like New Jersey are making promises to retirees that will be difficult to keep,” said Jonathan Williams, ALEC chief economist and executive vice president of policy. “Absent policy reforms, like successful measures recently implemented in North Carolina, unfunded OPEB liabilities could cause future tax increases or cuts to core public services in the Garden State.”

The ALEC Center for State Fiscal Reform works to educate policymakers and the general public on the principles of sound fiscal policy and the evidence that supports those principles. It also works to educate policymakers by outlining the policies that provide the best results for the hardworking taxpayers of America through personalized research, policy briefings in the states and releasing nonpartisan policy publications for distribution.

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The American Legislative Exchange Council is the largest nonpartisan, voluntary membership organization of state legislators in the United States. The Council is governed by state legislators who comprise the board of directors and is advised by the Private Enterprise Advisory Council, a group of private, foundation and think tank members. For more information about the American Legislative Exchange Council, please visit: www.alec.org.