<p>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.</p>
<p>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.</p>
<p>Nobody- they were ended for everyone but can be reinstated once a plan is either 70-80% funded. In effect that only impacts two plans- the teachers and the state workers. Those two plans were to be funded by the State. The other plans were all funded by local governments. Since the locals received State aid instead of the State making the pension contribution that is one factor in the law suit. Teachers, State workers and local workers all participated in the same plan with the same terms and now only the local workers will get the COLA. Part of the lawsuit is asking that if the law is allowed for the COLA change all pension plans should be equally funded at the start. In effect make up 17 years of non-funding to the teacher and State worker plan. The State could have made their required contribution if they did not give municipal aid. Without that aid the towns would have to make other choices if they were going to fund their pensions. Teachers and State workers should not face disparate treatment when they followed the same terms.</p>
<p>The health care changes go into effect over 4 years. Depending on what you make you could pay up to 35% of the premium. That will be an issue for me because in 3.5 years that is what I will pay but I would get it free if I retired. That has to go into my plan for consideration if I should retire.</p>