Tags: New Jersey | pension | fund | suit

New Jersey Union Sues Over Pension Fund Payments

Wednesday, 22 Jun 2011 05:53 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

NEW YORK — A New Jersey labor union filed a lawsuit on Wednesday over the failure by Gov. Chris Christie to make payments to the state's pension funds, claiming workers' constitutional rights were violated.

The lawsuit, filed by Local 1033 of the Communications Workers of America, claims that the failure by Christie and his predecessors to make payments to the funds violated a constitutional prohibition against the "impairment of contracts," a lawyer for the union said.

The union also claimed that as a result of the failure to make the payments, the state has made it more likely that political considerations will force a reduction in pension benefits when they come due.

The suit, which names Christie, the state treasurer and the legislative leaders, was filed in U.S. District Court in New Jersey. It asks that a judge intervene on the workers' behalf.

The lawsuit comes as the Democrat-controlled state legislature is poised to give final approval to a plan introduced by Christie, a Republican, to force public employees to pay more toward their pension and health care.

The state Senate passed the measure on Monday, and it is due to come to a vote in the state's lower house on Thursday.

"This is not about the benefits paid to retirees," said Rae Roeder, president of Local 1033. "This is about gross mismanagement by the state and its attempt to shift blame to the victims."

New Jersey's $30.7 billion unfunded pension liability makes it the seventh-worst funded system in the country, while the unfunded liability for retiree health benefits is $56.8 billion, according to Moody's Investors' Service.

Since 1998, the state has made three partial payments to the pension fund and skipped the remaining ones, a CWA spokesman said.

The governor's office declined to comment.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Krauthammer: GOP Must Push Its Agenda After Taking Senate

Tuesday, 21 Oct 2014 22:07 PM

Republicans have 3-1 odds of taking over the Senate, and they need to use that power to push their agenda, conservative  . . .

Wyoming Gay Couples Get Marriage Licenses

Tuesday, 21 Oct 2014 22:03 PM

Wyoming has become the latest state to allow same-sex unions, bringing the wave of legalizations to a place where the 19 . . .

Alveda King: Obama Proves Skin-Color Voting Doesn't Help Blacks

Tuesday, 21 Oct 2014 21:13 PM

Alveda King, niece of the Rev. Martin Luther King Jr., is at sharp odds with the Rev. Al Sharpton about which political  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved