4 Reasons New Jersey’s Pension Ruling Isn’t a Win for the State or Its Employees

Source: Liz Farmer, Governing, June 11, 2015

New Jersey’s top court this week overturned a lower court’s ruling that Gov. Chris Christie had violated a 2011 pension law. The decision means the state doesn’t have to pay its pension fund the $1.6 billion Christie had promised to pay when employees agreed to contribute more to their retirement accounts.
Tuesday’s ruling is largely hailed as a political victory for the governor, who will announce whether he’s running for president later this month. It’s also a temporary financial victory for New Jersey. But there are many more reasons why the win is fleeting and will ultimately place more pressure on a financially beleaguered state that can ill afford it. Here’s why:
New Jersey still has a really high pension liability. ….
New Jersey could still get downgraded. Again. ….
Retirement security for New Jersey state employees is now in doubt. ….
New Jersey still has other big budget problems. ….