Post by Logan on Jun 8, 2016 22:46:26 GMT -6
TRENTON — The state Supreme Court will rule Thursday morning whether a 2011 pension reform law freezing cost-of-living adjustments to pensions broke a legal promise to state and local government workers in New Jersey.
The case, which hinges on whether those COLAs are a protected part of workers' benefits, has major consequences for the public pension fund, which is already underfunded by about $59 billion.
A rating agency has estimated a loss for the state could increase those liabilities by a third.
But a loss for retired workers means they would continue to see their pension payouts eroded by inflation for decades to come. Under the law, COLAs would not be restored until the individual pension funds are much healthier, though some are better off than others.
Read more: www.nj.com/politics/index.ssf/2016/06/nj_supreme_court_to_rule_on_pension_colas_thursday.html
The case, which hinges on whether those COLAs are a protected part of workers' benefits, has major consequences for the public pension fund, which is already underfunded by about $59 billion.
A rating agency has estimated a loss for the state could increase those liabilities by a third.
But a loss for retired workers means they would continue to see their pension payouts eroded by inflation for decades to come. Under the law, COLAs would not be restored until the individual pension funds are much healthier, though some are better off than others.
Read more: www.nj.com/politics/index.ssf/2016/06/nj_supreme_court_to_rule_on_pension_colas_thursday.html