Advertise
Resources
Member, Beacon International Group, Ltd.
TRENTON—A New Jersey Superior Court judge has upheld a 2011 state law suspending automatic cost-of-living pension increases for retired state employees.
In an oral ruling delivered May 25 in a Mercer County Superior Court in Trenton, N.J., Judge Douglas Hurd ruled that the law, which affects current and future retirees, does not violate state statutes that preclude reductions in retired state workers' pension benefits.
The law, signed in June 2011 by New Jersey Gov. Chris Christie, suspended automatic cost-of-living adjustments for government retirees until the state's pension plans return to certain prescribed funding targets. The law also increased state employees' required pension contributions to 6.5% of their salary from 5.5%, and increased employees' share of health insurance premiums to as much as 35% of the cost of coverage.
Several of New Jersey's largest public unions, including those representing police officers, firefighters and public school teachers, had sought to challenge the law in federal and state courts, claiming in separate lawsuits the new statute unlawfully denies current and former state employees earned compensation. The federal claim was dismissed in March for jurisdictional reasons.
In a statement released last week, a spokesman for Gov. Christie's office said the governor was pleased with the Superior Court's ruling and was confident that the law would survive any hearings at the appellate level.
“Our goal remains to reform, protect and sustain the state pension system so it will be there for all current, retired and future employees,” the spokesman said. “At the same time, our bipartisan reform, including the COLA provision, stands to save New Jersey taxpayers tens of billions of dollars over the long term.”
TRENTON—Ken Kobylowski has been nominated to replace New Jersey Banking and Insurance Commissioner Tom Considine, who will resign to become chief operating officer of New York-based MagnaCare.