Inflation and retirement

tom1944
Mon, 24 Oct 2011 20:16:07 +0000

dstark- yes the legislation passed did away with COLA’s going forward. The result was that 3 lawsuits were filed challenging the new law. So far one was decided with a judge ruling that the changes to the Judiciary pension for judges violated the State constitution. NJ’s constitution states that judges salaries can not be reduced, Every previous pension change increased judges pay to counter the change. This law did not do that. It has caused the expected anger at the judge.
notrichenough- contract law in most States and in many States constitutional protection of pensions stop any changes you mention. As to health care I do not know if they can change it but as part of my contract I received a letter stating in retirement I get free health care. I received that from the Treasurer after my 25th year. Now free health care is only until you are Medicare eligible.

I think what you also need to understand that unlike most private pensions (when they existed) government pensions are contributory. In essence I purchased a product from the State. We both agreed to the terms. One side can not unilaterally change the terms of that agreement. Another thing I constantly read is criticsim of the union because of the pension. The pension existed in its current form before there were public sector unions. The pension is not a union plan. There are thousands of non-union employees in the plan. Me for instance. So the unions have no right or authority to do anything to change the pension.