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NJ Judge Rules Against Plan to Cut State Pension Contributions

New Jersey Gov. Chris Christie (R) suffered a setback Feb. 23 in his plan to reduce the state’s contributions to the state pension system. New Jersey Superior Court Judge Mary Jacobson said that the plan is unconstitutional.

Christie’s administration planned to slash cut $1.57 billion more from the state’s contribution to the system for 2015.

Jacobson had given an indication regarding the Feb. 23 ruling in her Jan. 15 comments to New Jersey Assistant Attorney General Jean Reilly. She had argued before Jacobson that the state can’t be compelled to make contributions to the state’s pension system. Jacobson remarked to her 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.

Reflecting those earlier comments, Jacobson’s ruling said that the state could not “‘simply walk away from its financial obligations,’ especially when those obligations were the State’s own creation.”

Christie spokesman Michael Drewniak said that the ruling was an attempt by the court “to replace its own judgment for the judgment of the people who were elected to make these decisions,” Reuters reports. Christie plans to continue “to work on a practical solution to New Jersey’s pension and health benefits problems,” Drewniak added. Christie plans to appeal Jacobson’s ruling to a higher court.