The Supreme Court has thrown out a challenge to a portion of Gov. Chris Christie’s 2011 pension reform act that suspended state pension cost of living adjustments.
The court said a statute granting qualified state government employees a “non-forefeitable right” to receive pension benefits does not preclude lawmakers from reducing future cost-of-living adjustments. In a June 9 decision, the court ruled by a 6-1 margin that the 1997 non-forfeitable right statute did not limit future exercises of legislative power because it did not clearly state the intent to do so. The ruling reverses an Appellate Division decision holding that the 1997 statute, known as Chapter 113, declared COLAs a contractual right.
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