N.J. Pension System Under Investigation by SEC
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New Jersey’s $80 billion pension system, whose funding shortfall grew as lawmakers failed to make required state contributions over a 10-year period, is being probed by the Securities and Exchange Commission, a state treasury department spokesman said.
The state’s Division of Pensions and Benefits was contacted in late April by the SEC regarding a “confidential, informal inquiry” into New Jersey’s retirement fund a spokesman for Treasurer Bradley Abelow, Tom Vincz, said. State officials have handed over thousands of pages of documents in response to requests by investigators conducting the probe, he said. The office of the U.S. Attorney for New Jersey is also involved.
“The division is cooperating fully,” Mr. Vincz said in a statement.
Governor Corzine has said the state failed to make required annual contributions to the pension fund in the decade before he took over as lawmakers sought to shore up state budgets. The lapses helped to create a funding gap at the ninth-largest American retirement system that is estimated at as much as $56 billion.
