New Jersey PBA to File Challenge to Pension, Health Reform Legislation

The ongoing debate over the landmark pension and health benefits reform package expected to be signed into law by Gov. Chris Christie on Monday will soon be heading to New Jersey's courts.  The state Policemen's Benevolent Association announced today that it will file a lawsuit against the legislation.

"We will use the full extent of our legal resources to expose the illegality of these laws," PBA president Anthony Wieners said. "These laws were scrutinized by legislators for only 10 days prior to passage."

The pension and health care benefits reform bill was approved by the state Senate on Monday by a vote of 24-15 and was passed by the Assembly on Thursday evening by a margin of 46-32. 

The PBA lawsuit intends to challenge the constitutionality of the law and its implications for collective bargaining. In the coming weeks, the PBA will confer with other unions on the pending lawsuit, Wieners said.

Wieners added that several aspects of the PBA lawsuit will include challenging the elimination of the automatic cost-of-living adjustment (COLA) for retired police, firefighters, teachers, state and local government employees in New Jersey's six pension systems for retirees. The lawsuit will also challenge the health contributions into the retirement portion for officers with less than 20 years, as well as the altering of existing collectively-bargained health plans.

About 60 percent of the projected $122 billion total pension savings in the reform bills comes from the elimination of COLA. Public employees currently paying 1.5 percent of their health care premium costs will pay 3 percent for those earning less than $25,000, and up to 35 percent of their health care premiums for those making up to $100,000, on a sliding scale that is based on employee compensation. The rates will gradually increase based on an employee’s salary, at intervals of $5,000.

The rise in health costs will not affect current retirees. Active employees with at least 20 years of service will pay the higher contributions while still active, but will not be affected upon their retirement.

Following the bill's passage on Thursday, Wieners released a statement condemning the state legislature for pushing the state's financial difficulties onto public employees.

"I hope and pray that no American worker whether it be police officer, firefighter, plumber or iron worker ever has done to them and their families what was done to us today," he said via release on Thursday evening.

On Friday, he expressed confidence that the legislation would not hold up in a court of law.

"Many aspects of this legislation have already been exposed, in a courtroom they will be exposed further," he said. "Our battle is moving from the Statehouse to the courthouse. I am confident that the justices will over rule these laws."