N.J. files response to lawsuit challenging public worker pension, benefit changes

Andrew Mills /The Star-LedgerGov. Chris Christie signed a series of state pension reform bills in March with bi-partisan support. The state's largest firefighter and police unions filed a lawsuit today to halt the reform bills, set to be enacted next month.

TRENTON -- New Jersey's Attorney General argued in court papers filed this week that public worker pension and benefits changes passed in March should stand because of the broad public interest involved for the state's taxpayers.

The filing was made in response to a lawsuit filed by police and firefighters unions in Superior Court attempting to overturn the pension and benefits laws, which are scheduled to take effect May 21. The unions have argued the changes would violate collective bargaining agreements by forcing workers to pay at least 1.5 percent of their salaries for health care costs.

The state, in a filing Thursday, said the greater public interest should be considered and the changes were within the law.

The changes to pensions and benefits for public workers across the state - signed by Gov. Chris Christie the day they passed the Democrat-controlled legislature with overwhelming, bipartisan support - mostly affect future hires.

But one law requires all current workers to pay at least 1.5 percent of their salaries toward health care costs by the time their next contract is signed.

At the time, Christie said he wanted the cuts to go deeper to help the state's pension investments. For years, the state skipped making its pension contributions, putting billions toward other budget items.

Two stock market slumps in the past decade also drove down the value of the state's investments fund, which had a market value of $68 billion as of late April.

That, along with the growing ranks of public workers, have left the pension funds $46 billion short of fulfilling the state's projected needs as of last summer.

The case is scheduled to be heard in court on May 20, the day before the legislation is supposed to go into effect.