Court issues ruling on Chapter 78 retiree contributions
A Superior Court judge recently ruled in Squitieri v. Passaic County et al that Passaic County cannot require certain assistant prosecutors to contribute toward health insurance and prescription coverage in retirement. We understand that many officers have heard of the ruling and are questioning whether it favorably resolves the issue of medical benefits in retirement. While this was certainly a favorable decision for the assistant prosecutor who brought the lawsuit, the court’ s decision probably will not have any general application and is binding only on the parties to the lawsuit. It also does not address one of the key issues that the NJ State PBA has been concerned about with the enactment of Chapter 78 – specifically whether officers who did not have 20 years of pensionable service as of June 28, 2011 or, alternatively, as of the expiration of a contract in effect on that date, are not required to contribute toward their health insurance coverage.
This is the specific issue we are litigating in Mercer County. The Passaic County lawsuit was based upon a unique set of circumstances. But the decision represents an inroad into the harshness of Chapter 78, particularly if there is an appeal and it is upheld.
The basic facts are as follows: Passaic County and the Assistant Prosecutors Association entered into a Memorandum of Agreement( MOA) in 2008, by which the county agreed that 45 assistant prosecutors who were listed in Appendix A of the MOA did not have to pay for health insurance and prescription coverage when they retired, as long as they had 25 years of pensionable service and were employed by Passaic County at the time of retirement. There were no references to the number of years of pensionable service for the employees on the list. After Chapter 78 became effective, and after the assistant prosecutors completed Tier 4 of their contributions in 2016, the terms of the MOA were incorporated into the Collective Negotiations Agreement( CNA) between the association and the county.
In discussing the terms of the MOA with members of the association, the county confirmed that it would honor its obligations under the agreement even after the enactment of Chapter 78. From June 28, 2011, when Chapter 78 became effective, until 2016, 14 individuals listed in the settlement agreement retired and did not have to pay for health insurance or prescription coverage in retirement. When the terms of the MOA were incorporated into the negotiated collective negotiations agreement in 2016, the county repeated its commitment that it would honor its obligations under the MOA even in light of Chapter 78.
In November 2016, the plaintiff in the case advised the county that she intended to retire on Oct. 1, 2017. She would have had 25 years of pensionable service at that time and fully expected
10 NEW JERSEY COPS ■ JANUARY 2018