“Hard working educators, nurses and public workers ability to retire with dignity after long careers of caring for New Jersey’s residents has been dealt a blow by this decision” said AFTNJ President Donna M. Chiera. “Governor Christie created this problem by backtracking on what he claimed as his signature achievement, legislation designed to find a middle ground to funding the pension liability. On behalf of 30,000 members of AFTNJ we are joining with public workers in calling on the Governor and the legislature to find a balanced approach to the economy: including raising revenues from those who can afford to pay in order to meet our obligations and gain fiscal stability.”
The June 9, 2015 ruling is on the narrow question of whether the Governor’s Chapter 78 law mandated payments to fund the pension system. A split court reversed the lower court decision mandating such payments. Still, the justices affirmed workers contractual right and to be paid earned pensions, citing the morality of our arguments.
State Senate President Sweeney announced his decision to fully fund the payment in this coming year’s budget. “The [Assembly] Speaker and I are fully committed to funding the pension in this coming year’s budget.”
“Public workers are depending on the modest retirement benefits in the state system,” said Chiera. “We are calling on the legislature to find a balanced approach to meeting its obligations and being fiscally responsible.” The unfunded pension liability has impacted the state bond rating making it more costly to borrow money.
Here are a few facts about the state pension system
Fact: The State Supreme Court has continued to affirm workers right to their deferred wages in the pension system.
Fact: The Governor’s continued refusal to fund the pension system reflects his priorities; millionaires get tax breaks and corporations get tax handouts; while state services, the education system and responsible budgeting to meet obligations suffer.
Fact: The unfunded liability that Chapter 78 pledged to address is a contributing factor in an unprecedented nine credit rating downgrades under Governor Christie.