Pension Obligations: Back into the Political Sandbox

Members of Somerset County's education association in Somerville.

Today, the Supreme Court of the State of New Jersey decisively ruled (5-2) that it will not interfere with what are the constitutional responsibilities of the New Jersey Legislative and Executive branches concerning the much contested and underfunded pensions of public employees.

Although a lower court had previously ruled in favor of the New Jersey Education Association and its members to enforce a pension payment shortfall of $1.57 billion to be included in next year’s state budget, the Supreme Court reversed that decision upon direct appeal by the Christie administration.

In a 144-page opinion released this morning, N.J.’s highest court ruled “That the State must get its financial house in order . . . and that “the need (to do this) is compelling in respect of the State’s ability to honor its compensation commitment to retired employees.”

However, it also affirmed that “The Court cannot resolve that need in place of the political branches.  They will have to deal with one another to forge a solution to the tenuous financial status of New Jersey’s pension funding in a way that comports with the strictures of our Constitution.”

N.J.’s highest Court unambiguously certified that “The responsibility for the budget process remains squarely with the Legislature and Executive, the branches accountable to the voters through the electoral process.”

CONCLUSION OF THE COURT:  “This is not an occasion for the Judiciary to act on the other branches’ behalf.”

Amen!