KBRA Comments on New Jersey’s Contribution of the Lottery Enterprise to its Pension Funds: A Significant Step but a Long Way to Go

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) has published a comment on New Jersey’s
contribution of its lottery enterprise to three of the state’s pension
funds. The comments key points are:

  • In KBRA’s view, the State of New Jersey has significantly increased
    the level of assets in its pension funds through the irrevocable
    contribution of the Lottery Enterprise for a period of 30 years. The
    Lottery Enterprise has been valued at $13.5 billion.
  • The value of this one-time contribution represents 7.3X the pension
    contribution made by the State in FY 2017.
  • The contribution of the Lottery Enterprise is a meaningful step
    towards addressing the State’s substantial unfunded pension
    liabilities. As a result of this transaction, the funded ratio of the
    State’s combined retirement systems has increased from 45% to 59%. The
    aggregate unfunded actuarial accrued liability has been reduced from
    $49.1 billion to $36.5 billion, or a reduction of 25.6%.

Click here
to read the full comment.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a
Nationally Recognized Statistical Rating Organization (NRSRO). In
addition, KBRA is recognized by the National Association of Insurance
Commissioners (NAIC) as a Credit Rating Provider (CRP).

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