Review of the State of New Jersey's Fiscal Year 1994 Pension Fund Withdrawal

EXECUTIVE SUMMARY:

In 1994 New Jersey, based on changes to its State law, withdrew $180.2 million from State employees' pension programs and deposited the funds into the State's General Fund.  This final report points out that the State did not credit the Federal Government with its share of the pension expenses originally funded by Federal programs, grants, and contracts. The amount owed the Federal Government, including interest, totaled about $9.7 million. We recommended the State return this amount to the Federal Government. The State concurred, and issued a check to the Department of Health and Human Services for the $9.7 million in July 2001.