Christie Sued For Reducing Pensions
The Communication Workers of America is suing the New Jersey governor for taking $2.43 billion meant for pensions to balance New Jersey’s budget.
The announcement from the CWA today comes a day after the largest public-worker union in the state, the New Jersey Education Association, said it would challenge Christie’s plans in court. The CWA is the largest state workers union.
The Republican governor, in a stunning about-face, announced Tuesday that he would reduce two key payments meant to shore up New Jersey’s strained pension system, grabbing a total of $2.43 billion to cover unexpected revenue shortfalls in his budgets.
For Christie, the move means he is walking away from a major pension overhaul he signed in his first term to restore the pension system’s financial health over approximately 30 years. But the governor said he had few other choices: He won’t raise taxes, he won’t take funds from schools and health care programs, and there is next to nothing left to cut in state spending.
“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, state director of the CWA. “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.”