< The 2015 Pension 40: The Long Climb

With less than a year before the 2016 U.S. presidential election, New Jersey Governor Chris Christie, 53, is still running for the GOP nomination despite polling at about 3 percent. Back in the Garden State, Christie has another, even less promising number to ponder: $83 billion in unfunded state pension liabilities. For the past decade or so, starting with governor Christine Todd Whitman, New Jersey cut back on pension payments — when it didn’t skip them outright. “Politically, it was the path of least resistance,” says Tom Byrne, head of Princeton, New Jersey–based Byrne Asset Management and chairman of the New Jersey State Investment Council (and son of a former Democratic governor, Brendan Byrne), which oversees the state’s pension investments. “This is the fault of the past six governors, both Democrat and Republican, who didn’t push through the contributions.” The system is only about 63 percent funded. Christie signed bills in March 2010 and June 2011 that mandated higher contributions from plan members, the freezing of cost-of-living increases, lower payouts to new hires and the system’s contractual right to full state funding. But in May 2015 he kicked the can down the road. Arguing that the problem wasn’t caused by his administration, he said New Jersey would pay $1.3 billion into the system rather than the $3.1 billion promised in the 2011 bill. In June the New Jersey Supreme Court ruled that Christie could withhold the funds, and this fall the court heard arguments about whether the 2011 freezing of cost-of-living hikes is constitutional. Christie created a pension commission that released a plan in February that would shift the pension burden to local districts, forcing a bump in already-steep property taxes. Meanwhile, New Jersey’s credit rating has been steadily downgraded, state-issued securities have been beaten down, and pension fund performance has fallen, forcing the fund to seek higher-fee alternative assets — the vicious cycle of a pension system in distress.

 
The 2015 Pension 40

1. Bruce Rauner Illinois 2. John & Laura Arnold Laura and John Arnold Foundation Fireside Chat- The New Credit Playbook: Convergence, Liquidity, and Innovation in Institutional Portfolios Sponsored by Nuveen June 17, 2025 3. Chris Christie New Jersey 4. Randi Weingarten AmericanFederation of Teachers 5. Phyllis Borzi U.S. Department of Labor

6. Kevin de León California 7. Alejandro García Padilla Commonwealth ofPuerto Rico 8. Laurence Fink BlackRock 9. Rahm Emanuel Chicago 10. Sean McGarvey North AmericanBuilding Trades Unions

11. John Kline Minnesota 12. J. Mark Iwry U.S. Treasury Department 13. Damon Silvers AFL-CIO 14. Jeffrey Immelt General Electric Co. 15. Joshua Gotbaum Brookings Institution

16. Robin Diamonte United Technologies Corp. 17. Mark Mullet Washington 18. Terry O'Sullivan Laborers' International Union of North America 19. Raymond Dalio Bridgewater Associates 20. Ted Wheeler Oregon

21. Thomas Nyhan Central States Southeast and Southwest Areas Pension Fund 22. Karen Ferguson & Karen Friedman Pensions Rights Center 23. Randy DeFrehn National Coordinating Committee forMultiemployer Plans 24. Robert O'Keef Motorola Solutions 25. Caitlin Long Morgan Stanley

26. Kenneth Feinberg The Law Offices of Kenneth R. Feinberg 27. Orrin Hatch Utah 28. Kathleen Kennedy Townsend Center for Retirement Initiatives, Georgetown University 29. Ian Lanoff Groom Law Group 30. Joshua Rauh Stanford Graduate School of Business

31. Ted Eliopoulos California Public Employees' Retirement System 32. Edward (Ted) Siedle Benchmark Financial Services 33. Teresa Ghilarducci New School for Social Research 34. Denise Nappier Connecticut 35. W. Thomas Reeder Jr. Pension BenefitGuaranty Corp.

36. Hank Kim National Conference on Public Employee Retirement Systems 37. Paul Singer Elliott Management Corp. 38. Bailey Childers National PublicPension Coalition 39. Amy Kessler Prudential Financial 40. Judy Mares U.S. Labor Department