Christie's Pension Scheme Under Fire

New Jersey Gov. Chris Christie is feeling the heat.

Just a week into 2015 and the governor’s inexcusable treatment of the state’s retirees is facing more backlash.

First up: A state appeals court ruled that New Jersey’s Division of Pensions and Benefits “overstepped its authority” when it raised retirees’ prescription copays.

The judges said the division should have maintained the status quo while labor and public employer representatives resolved dispute over revised copays for 2013. Now Hetty Rosenstein, CWA’s New Jersey area director and a plaintiff in the suit, is lobbying for retirees to be reimbursed.

Then, along comes a report disputing Christie’s frequent claims that New Jersey’s public employee pensions are “exorbitant.” New Jersey Policy Perspective found that the state actually ranks 95th in pension generosity among the country’s 100 largest plans—making it one of the least giving nationwide.

Retirees have zero automatic protection against inflation, and employees pay more into the system than public workers in other state systems. New Jersey also uses a “very low” multiplier to calculate pension benefits, even as the state continues to be one of the highest-cost places to live. The real problem, the study concludes, is the “state’s persistent failure to make annual required contribution payments.”

What’s next? Two lawsuits could determine where this fight goes next. Trustees of New Jersey’s largest pension funds have filed a lawsuit against Christie for failing to pay his legally obligated $2.4 billion payment to the pension fund.

Unions representing public workers, including CWA, have also filed their own lawsuit saying that Christie's action violated the state and federal constitutions.