I don't follow NJ pension operations, but in general, the public sector has been decades behind many large (and small) private sector businesses in switching to 401-k plans instead of pensions for their employees. With 401-k's, each employee makes their own investment decisions, and OWNS the assets in their individual account.

With 401-k's, the "boneheads" have no power to make good OR bad decisions about individual employee investments. Prefer to have a retirement stream of income that can't be outlived? Just convert to several varieties of annuities at retirement.

And "boneheaded" decisions can be made at either spectrum of political parties, whether its NJ, with a republican governor, or Detroit, with long-time democrat politicians.

JMHO.