NEWS...

NEW JERSEY PUBLIC SERVANTS MAY HAVE LAW ON THEIR SIDE IN PENSION BATTLE

CLIFFVIEW PILOT.COM - February 26, 2011 - The latest bombshells in the battle between Gov. Christie and New Jersey public servants -- just days from a huge rally in Trenton -- come in the form of advisory letters that say state lawmakers can't change a public employee's pension once he or she has put in five years on the job. In an August 2006 letter to the state treasurer, then-Attorney General Zulima Farber wrote that the state Legislature in 1997 "set the benchmark" at five years of service for police, firefighter and teachers union members to have "non-forfeitable rights" to current pension benefits.

In addition, a letter that same week from the state Legislature's legal counsel bluntly states that the right to benefits for anyone who has completed five years of service "cannot be reduced."

"Legislation that has the effect of detrimentally altering the retirement benefits of active members of State-administered retirement systems who have accrued at least five years of service credit, or of retired members, would be unconstitutional as violative of the federal and State constitutional proscription against impairment of the obligation of contracts," the letter to the Joint Legislative Committee on Public Employee Benefits Reform says.

So even if Christie does convince the Legislature to accept his reforms, a court could overrule any attempts to "substantially impair" pensions for those public servants who've already put in five years, according to Assistant Attorney General John P. Bender, who prepared the advisory letter for Farber.

The state would then have to show it had a "significant and legitimate purpose" -- and, more importantly, that lawmakers basically had no other choice, it says.

"A court will look to whether the legislative objectives could have been achieved by a less drastic alternative, including one that does not impair contractual rights," New Jersey case law states.

"The more substantial the impairment, the greater the level of scrutiny to which the law will be subjected," it adds. "The courts will not simply allow the State to walk away from its financial obligations."

Farber's letter cites "the well established treatment of pension laws by New Jersey courts." These traditionally have been decided "most favorably to the employee's interests.""Because the length of service varies for each employee covered by a state pension system, this act has had the effect of creating different categories of employees," the letter says:

While the law automatically vests anyone with 10 years of "creditable" service, "the extent of the non-forfeiable benefits for individual employees is determined not at the time of vesting but with reference to the benefits provided by law for that pension system when the employee accrued 5 years of service credit... but have not yet vested."

Those with less than five years aren't totally out of luck. Farber's letter points out that a court could reject pension cuts for that group if they "result in large tax liabilities for the trusts and the plan members."

Lawmakers can still "alter, modify or amend" the pension system, the advisory letter says. The current pension law in New Jersey also doesn't apply to post-retirement medical benefits, it notes.

"Pensions for public employees serve a public purpose," wrote Albert Porroni, then the state Legislative Counsel.

“It is common knowledge that a pension is an element in encouraging qualified individuals to enter and remain in public service,” Porroni quotes from state law, adding: “Deferred compensation benefits have been earned by an employee and are no longer considered a gratuity.”

By reducing pension benefits for those who already, under state law, are protected "would be impermissably impairing the obligation of a contract to which it is a party," Porroni's letter says.

When state legislators enaced the law, they "did not reserve the right to unilaterally adopt substantial modifications of the pension program," it adds. "More modest means of saving or raising money are available to the State that do not affect contractual obligations."

CHRISTIE CAMPAGIN LETTER PROMISED 'NO HARM' TO POLICE, FIREFIGHTER PENSIONS

CLIFFVIEW PILOT.COM - February 25, 2011 - "The claim that any harm would come to your pension when I'm elected Governor is absolutely untrue. It is a 100% lie," Chris Christie wrote to New Jersey law enforcement officers during his campaign against Jon Corzine. The 2009 letter, and a near-carbon copy sent to firefighters, has resurfaced amid Christie's bid to overhaul public servants' pension system.

"Nothing will change for the pensions of current officers, future officers or retirees in a Christie Administration," says the "Open Letter to Members of Our Law Enforcement Community," simply signed "Chris."

"I have repeated time and time again that the pension agreement we made with our member our law enforcement community must be respected," the 2009 letter adds. "It is a sacred trust."

Christie sent a similar "sacred trust" letter to firefighters through the state, adding: "The notion that I would eliminate, change, or alter your pension is not only a lie, but cannot be further from the truth.

"No one will stand up for you more than I will."

"Do not believe the lies that have been spread about my proposals," Christie told both groups. "Your pension will be protected when I am elected Governor."

Democratic Governors Must Defend Labor, or Lose an Ally Conservative governors have launched an all-out effort to destroy unions and Democratic governors must stand up and defend the movement that has supported them for so many years. That was the unvarnished message IAFF General President Harold A. Schaitberger delivered to the Democratic Governors Association assembled in Washington February 25 at the Capital Hilton. In a closed door meeting with the nation’s Democratic governors, Mr. Schaitberger made it clear that the concerted attack on unions has nothing to do with the economy and everything to do with crippling Democrats’ most loyal and effective ally. “They are using the economy to promote their own political agenda, and that agenda is to kill unions. It’s totally political and has nothing to do with the economy or budgets,” Mr. Schaitberger said. “This is about destroying the labor movement and the Democrats greatest ally. Take labor’s money off the table and take labor’s shoe leather off the campaign trail and Democrats lose.” Mr. Schaitberger told the governors that IAFF affiliates fully understand the challenges state lawmakers face in trying to manage states with dwindling resources. He reminded them that fire fighters have been feeling the effects of the recession as much as any other group of workers. “Our members are contending with layoffs, closing companies and reducing levels of service. Response times are increasing and communities are less secure,” Mr. Schaitberger said. “But our members are also giving back with salary freezes or cuts, furloughs, cost shifting on health care, attacks on our pensions, reductions in benefits and other cost cutting measures.” It has been painful but these sacrifices were made by legislatures or at the bargaining table for economic reasons. “But now something ugly and unacceptable is occurring,” Mr. Schaitberger said. “After the mid-terms the mood changed. Governors, mostly Republican, but also some Democrats, have painted targets on the backs of public employees.” He listed the numerous states where governors had launched legislative proposals clearly aimed at crippling unions. Right now there are right to work measures in 13 states, paycheck deception proposals in 15 states, attacks on prevailing wage, to eliminate dues deduction, our defined benefit pensions, cost shifting on health care and even attempts in eight states to eliminate bargaining rights. Mr. Schaitberger made it clear that it was now time for Democratic governors to stand with labor and beat back this coordinated assault, or risk further erosion of their political influence in the states and in Washington. “Stand up for us. We’re there for you and you need to be there for us,” Mr. Schaitberger said. “You need to stand up for the process, the collective bargaining process. It works. It’s a basic right that built the middle class in this country and the push to eliminate us will hurt all of you tremendously.” Mr. Schaitberger also pointed out that most of the public worker pensions were healthy, and those that were underfunded were that way because governments had failed to make their scheduled payments into the systems over the years. “So, there’s plenty of ammunition for our friends -- you --  our Democratic Governors to push back with. And, that’s what we want and expect,” Mr. Schaitberger said. Schaitberger concluded by thanking Maryland Governor and DGA Chair Martin O’Malley for publicly standing up for workers and unions in defense against the attacks by GOP governors like Chris Christie of New Jersey and Scott Walker of Wisconsin.