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%.
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).