New Jersey PBA to File Suit Against Pension, Health Reform Legislation

A court battle looms over the landmark pension and health benefits reform package passed Thursday and expected to become law on Monday with Gov. Chris Christie's signature.

The state Policemen's Benevolent Association announced today it will file suit against the legislation.

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

The state Assembly approved the bill 46-32 on Thursday evening; the state Senate voted Monday 24-15 for the measure.

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

According to Weiners, the PBA lawsuit will challenge eliminating 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 also will challenge the health contributions into the retirement portion for officers with less than 20 years on the job, 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 healthcare premium cost will pay 3 percent for those earning under $25,000, and up to 35 percent of their healthcare 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 compensation, at intervals of $5,000. 

The increase to health costs will not affect current retirees, and active employees with at least 20 years of service will pay the increased 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 on to 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 Friday, he expressed confidence 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 State House to the courthouse. I am confident that the justices will overrule these laws."