Oral Arguments Slated in N.J. Pension Case

A lawsuit brought against New Jersey Gov. Chris Christie over lack of payments to the state's pension system has reached the courtroom.

Mercer County Superior Court Assignment Judge Mary C. Jacobson is scheduled to hear oral arguments Thursday in Trenton in the case that developed after multiple public employee unions sued Christie last year for not making previously approved pension payments.

The Republican governor vetoed $1.57 billion in unfunded actuarial accrued liability pension payments from the fiscal 2015 budget in June. New Jersey made 28% percent of its required pension payment in 2013, which marked the lowest among U.S. states, according to data provided by Loop Capital Markets.

Jacobson ruled last June that Christie could curb pension payments for 2014, but added that a 2011 law implementing a scheduled ramp-up of the state's pension funding for seven years created a contractual right for the money to go to employee pensions.

She emphasized in her June 25 decision, which came only a few days before the close of the 2014 fiscal year, that the state had few financial options in that time frame to balance its budget and "a different analysis could very well be required for fiscal year 2015."

Christopher Burgos, president of the State Troopers Fraternal Association of New Jersey, said he hopes for a positive outcome Thursday, but is anticipating the legal battle to run its course through the courts no matter what Judge Jacobson's ruling is.

"We're just looking for what the law requires," said Burgos, whose union represents 550 troopers. "There is a whole lot at stake here."

Christie spokesman Kevin Roberts said the governor would not comment on the case because of pending litigation. In his State of the State address delivered on Jan. 13, Christie emphasized the state's pension problems saying in order to close the current shortfall, every New Jersey family would need to write a check for $12,000.

"While we have been making up ground, the pension fund is underfunded because of poor decisions by governors and legislatures of both parties, over decades, not years," said Christie in his speech. "These sins of the past have made the system unaffordable."