Investigation Uncovers Systemic Weaknesses in New Jersey Police and Firemen’s Pension System

Office of the State Comptroller found unreported misconduct and inconsistent decision-making threaten pension fund integrity.

TRENTON–An investigation finds 21 members of the New Jersey Police and Firemen’s Pension System (PFRSNJ) with histories of misconduct retired without undergoing the required honorable service reviews to determine if they should forfeit part or all of their pension, according to a report by the Office of the State Comptroller.

The 21 members identified included officers involved in serious, often ongoing misconduct over many years, officers who faced criminal charges, and officers who ultimately were required by court order to give up their law enforcement jobs. One such member retired while facing child pornography charges and was later convicted. These members may represent only the tip of the iceberg, OSC found.

“These findings expose a serious gap in efforts to protect underfunded pension funds and deter misconduct by law enforcement officers,” said Acting State Comptroller Kevin Walsh. “Our laws demand that public employees act honorably as a condition of receiving their pensions. These 21 former officers are the ones we found. We don’t know how many are out there who committed misconduct and are getting full pensions simply because no one told the pension board what they did wrong.”

Other findings include:

• Non-reporting of Misconduct: Local employees who are responsible for communicating with the Division of Pensions and Benefits upon a member’s retirement often failed to report necessary details due to misunderstandings of their roles.
• Misuse of Settlement Agreements: Some agencies used settlement agreements to obscure or alter facts related to members’ misconduct, preventing accurate assessments of officers’ honorable service.
• Misplaced Reliance on Retirements in “Good Standing”: The pension board considered retirements in “good standing” as a factor in its analysis, even when they involved members who had obstructed and interfered in criminal investigations for personal benefit; sent unwanted sexually explicit messages to a female victim; repeatedly punched an arrestee after he was handcuffed; posted racist messages on social media; and were repeatedly suspended for unrelated instances of misconduct.
• Inconsistent Decision-Making: Even with full information, the pension board’s decisions often appeared illogical or inconsistent, allowing officers with serious misconduct to retire with full or minimal forfeiture of their pension benefits.

The pension system faces significant monetary and non-monetary costs due to these systemic weaknesses, exacerbating an already unfunded liability of over $4.4 billion.

OSC made 15 recommendations aimed at strengthening the integrity of the pension system, including mandatory self-reporting of disciplinary actions by retiring members, enhanced training for certifying officers, and legislative reforms to close existing loopholes. OSC is also referring certain matters to the Office of Attorney Ethics and the Attorney General for further action as necessary.

Read the report.

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