New Jersey Supreme Court to hear arguments in pension case

    New Jersey’s Supreme Court will hear arguments over whether the state’s public pensioners have a contractual right to cost of living increases.

    The court is set to listen to arguments Monday, the latest in a long-running fight between the Christie administration and public sector unions over retirement benefits.

    Gov. Chris Christie and the Democrat-led Legislature agreed to end the pay increases as part of a 2011 deal in which the Republican governor agreed to make payments into the debt-laden pension in return for the cuts.

    When state revenues fell below expectations, Christie contributed less to the pension than the law required, angering Democrats and unions. But the cost of living adjustment cuts were not restored.

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