NJ Dem Demands $1 Trillion Federal Bailout of Pensions

TRENTON (AP) -

The president of the New Jersey Senate called Wednesday for a national solution to problems facing public worker pension systems in the state and others in the form of about $1 trillion for low-interest loans.

Steve Sweeney, a Democrat, said that with many states facing pension funding problems — including some in worse shape than New Jersey — it makes sense for the federal government to help before things gets worse.

“Let’s be clear, this is not a bailout or a handout,” he said. “When a state defaults, who’s going to come in? The federal government. Then it’s a bailout.”

The proposal would require congressional action. Sweeney said he has started pitching it to congressmen.