www.njcopsmagazine.com ■ FEBRUARY 2015
funding litigation
August to recommend long-term solutions to the state’s chronic underfunding of its pensions, as well as the growing liability
of promised post-retirement medical benefits. Despite the
passage of several deadlines, the Commission has yet to issue
its final report, which undoubtedly will be used as a springboard for further statutory recommendations by the governor.
In the interim, the Supreme Court has yet to act on the
state’s appeal of last year’s Appellate Division decision
regarding retiree COLA benefits. In that case, the Appellate
Division agreed with our argument that COLAs are an integral
part of an employee’s promised pension benefit, and that
Chapter 78’s virtual elimination of COLAs in retirement was
improper absent extraordinary reasons to the contrary.
Despite the passage of almost six months, the Supreme Court
has not yet decided whether to hear the appeal.
Both of these cases involve precedent-setting decisions, and
could conceivably create a showdown between the courts and
the governor if he defies a requirement to make the payments
required by the current law. In the interim, we will continue to
vigorously pursue the litigation on behalf of the PBA and related public sector unions, and will report on the decisions as
soon as they are issued. d
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