N.J. AG: State Can’t Be Bullied into Contributing to Pension System

The curtain appears to be far from closing on the drama surrounding the New Jersey pension system. The state's Assistant Attorney General Jean Reilly on Jan. 15 argued before New Jersey Superior Court Judge Mary Jacobson that New Jersey can’t be compelled to make contributions to the state’s pension system, Reuters reports.

Reilly told Jacobson that the pension reforms enacted in 2011 are unconstitutional, arguing it forces legislatures yet to be elected to fund something they did not approve — a bit of an unusual argument, since the administration of Gov. Chris Christie (R) had supported that measure.

Christie's one-time support has not translated into funding. His administration cut almost $900 million from the 2014 pension contribution and plans to slash even more from the state’s contribution to the system for 2015 — $1.57 billion. And the state senate failed Dec. 18 to override Christie’s veto of a bill that would have required quarterly contributions to the state plan.

In her exchange with Reilly, Jacobson expressed the view that the pension reforms not only required the state to make payments into the state retirement plan, it also made then a contractual right for state workers.