Earlier this year, Gov. Phil Murphy and lawmakers enacted a new state budget that fully funded New Jersey’s annual employer obligation to pension funds that cover the retirements of more than 800,000 government workers.
It marked the fifth year in a row that Murphy and lawmakers set aside enough funding to cover the full annual pension contribution calculated by state actuaries, a fiscal milestone that will likely be a key part of Murphy’s legacy as the term-limited Democrats prepares to leave office next month.
Meanwhile, the state pension funds have also been receiving a big boost in recent months from healthy investment returns. Those returns reached nearly 11% during the 2025 fiscal year, which ended June 30, according to preliminary performance totals released by the state Division of Investment in late October.
Over the summer, state Lottery officials reported overall sales had sagged during the 2025 fiscal year compared to the prior fiscal year. However, dedicated revenues the Lottery sends, by law, into the pension system on a monthly basis still totaled roughly $1 billion during the 2025 fiscal year, the officials said.
And in the Legislature, numerous proposals that called for changes to state pension rules for employees came up for consideration in 2025. These included a call to restore suspended cost-of-living adjustments for a group of retired first responders.
Another measure seeking to tweak the rules for teachers who take breaks in service, including to raise children, was signed into law by Murphy in the fall.
Here are key stories from NJ Spotlight News about the state’s public pension system:
We’re in this together.
For a better-informed future.
Support our nonprofit newsroom.
