This excerpt originally appeared in Public Sector Inc. on June 15, 2012.

To move from a world of zero pension contributions to between one-sixth and one-third of the annual budget is sure to shock politicians as they think about future state budgets. New Jersey is of course not the only government that will be looking at a very different set of pension numbers soon. It will be worth watching how these states and municipalities adjust their funding strategies as the new rule takes effect.