Presaging the current crisis, that pension plan collapsed due to inadequate funding, which led to the TPAF's creation in 1919.
The 1919 version of the TPAF serves as a benchmark for a more prudent commitment of taxpayer dollars.
This long-sought goal was the NJEA's "greatest legislative achievement of 1987." (63) Retiree health benefits and cost-of-living adjustments (COLAs) become a liability of the TPAF and were both pre-funded on a reserve basis.
The law allowed local employers to phase in their total contributions in increments of 20 percent to reach full funding for the TPAF by 2008.
(128) This is quite a contrast with the original TPAF in which teachers were expected to fund half their retirement benefits.
The SEC's order finds that New Jersey made material misrepresentations and omissions about the underfunding of TPAF and PERS in such bond disclosure documents as preliminary official statements, official statements, and continuing disclosures.
Failed to disclose and misrepresented information about legislation adopted in 2001 that increased retirement benefits for employees and retirees enrolled in TPAF and PERS;
Failed to disclose and misrepresented information about the state's use of the BEFs as part of a five-year 'phase-in plan' to begin making contributions to TPAF and PERS;
The state was aware of the underfunding of TPAF and PERS and the potential effects of the underfunding.
"Due to this lack of disclosure training and inadequate procedures for the drafting and review of bond disclosure documents, the state made material misrepresentations to investors and failed to disclose material information regarding TPAF and PERS in bond offering documents," the SEC said.