NJ High Court Hears Christie Administration Argue Against Its Mandated Pension Payments
By David Madden
TRENTON, N.J. (CBS) -- The New Jersey Supreme Court heard lengthy arguments today over whether the Christie administration should be forced to make a full, $1.6-billion payment into the state pension fund as required by law.
State employees' unions argue that full funding of their pensions is a constitutional right.
The state's deputy attorney general, Jean Reilly, argued on the other hand that any payment is subject to legislative appropriations every year and, in the end, whether the state can afford it.
"Several entities with no stake in the pension system have recognized that the Chapter 78 contributions schedule is simply unsustainable," she told the justices.
Lawyers for the unions countered that the law, signed by Gov. Christie himself a few years ago, was created to avert bankrupting the fund over the next decade or so.
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"Chapter 78 is designed to make sure that this court never has to grapple with that very difficult question about whether or not people are going to be paid the pension benefits," said Steven Weissman, an attorney for one of the unions that represents state workers.
Justices questioned whether this issue might drag the courts into the annual budget process in the future -- in effect, approving state spending priorities.