Governor Christie is anti-law enforcement and pro-mega wealthy and pro-high priced lawyers.

The New Jersey State PBA is pleased to announce that the court decisions in two cases which we brought have significantly advanced our interests in a well-funded pension system.  Both decisions, one from respected Assignment Judge Mary Jacobson, and the other from the Appellate Division, have now confirmed what we have been saying all along – Chapter 78 created a contractual right to our pensions; that the contractual right includes annual COLA increases; and that we have a right to compel funding of the pension systems.  While we have not reached our ultimate goal, which is forcing full pension funding immediately, these court decisions are a significant victory.

THE FUNDING DECISION (State PBA et als v. Christie)

While yesterday’s newspaper articles highlighted that Judge Jacobson denied the application for an injunction requiring Governor Christie to pay over $800 million dollars into the pension system in the next five days, her 100 page opinion makes clear that the State’s dire economic circumstances make this a unique situation in which the court would not intervene at the last minute.  The decision, however, is replete with statements confirming that there is a “contractual” right to a pension; that pensions are not a gift the State voluntarily bestowed; and that Chapter 78 requires State funding on an annual basis as required by the statute.  In addition, the court held it was not ruling on whether the Governor’s intended refusal to fully fund the FY  2015 pension payment is permissible.  All of those issues remain very much alive in the lawsuit as it continues before Judge Jacobson.  That is a significant victory, and the language contained in her opinion, reaffirming these principles, is very encouraging.

COLA DECISION (Berg v. Christie)

In addition, the Appellate Division yesterday issued its decision in our case contesting the Chapter 78 “freeze” of COLA payments.  Last year a trial court dismissed our suit, contending that COLA payments were not protected by Chapter 78, or apparently even part of a guaranteed pension system.

A unanimous Appellate Division has reversed those determinations.  The court concluded that COLA payments are indeed as much a part of the pension “system” as the vested entitlement.  And both are “contractual” guarantees protected by Chapter 78.  However, the Appellate Division remanded the matter to the trial court to determine whether there is a sufficient financial emergency to breach the contractual right that all retirees have.

As noted, these cases have not completely resolved all issues in our favor.  Moreover, there is still a likelihood they will ultimately be appealed to the Supreme Court.  Nonetheless, these cases are major victories in elevating both COLAs, and pension funding, to the status of enforceable “contractual rights”.  We will obviously continue to vigorously pursue them, to keep the pressure on.