CWA Taking Christie To Court For Breaking Law & Failing To Make Promised Pension Payments

For Immediate Release:
Wednesday, May 21st, 2014

(TRENTON, NJ) – Following yesterday’s incredulous announcement by Governor Chris Christie’s that he is refusing to make promised pension payments, the Communications Workers of America (CWA) is taking Governor Christie to court. CWA’s legal action will require Christie to pay into the pension system, as the very law he signed intended.

“Governor Christie is not only breaking his word, but he’s also breaking the law in failing to make these pension payments,” said Hetty Rosenstein, CWA NJ State Director, “Put aside how Christie’s actions are immoral. If the pension payments are not made, the plan will go bankrupt. Retirees and active workers will spend their retirement in poverty through no fault of their own. For these reasons, and more, we are taking the governor to court. And we will be mobilizing our members and allies in protest of Christie’s outrageous, illegal actions.”

The law is clear. And this latest Christie scheme is a direct contravention of the legislation he signed and that he said was going to save the pension.

Governor Christie’s decision to reduce the $1.6 billion payment to the pension systems due this fiscal year by almost $900 million, along with his stated intention to reduce the payment due next year by over $1.5 billion is a blatant violation of the State’s statutory obligation to make its annual required contributions to the pension systems as determined by the systems’ actuaries. The annual required contribution includes payments for the unfunded accrued liability that is the result of decades of underfunding the pension systems. Christie refers to this underfunding as the “sins of the past.” But the law requires that the State finally make up for these “sins” - because hundreds of thousands of retirees and current employees are entitled to the modest pensions they earned through decades of dedicated public service. These are pensions that they contributed to throughout their employment. And it is rightfully owed to them.

The pension statutes expressly empower any member of the pension system or a board of trustees to file a complaint with the Superior Court’s Law Division to enforce the contractual right to a securely funded pension system. The statute also compels the State to make its annual required contribution, as determined by the pension systems’ actuaries.

As such, CWA has directed its lawyers to begin preparing a complaint to file in court to require Governor Christie to pay into the pension systems the annual required contribution that the Legislature appropriated in the fiscal year 2014 Appropriations Act.