A legal challenge to Gov. Chris Christie's effort to save the state pension system by taking away retirees' cost-of-living increases is headed to the state Supreme Court as Christie's presidential bid heats up, according to NorthJersey.com.
A ruling against Christie may mean the collapse of the state's pension system as the unfunded liability continues to outpace money coming in to pay pensions. Since oral arguments in the case are expected in early 2016, legal wrangling has the potential to interfere with Christie's bid for the Republican nomination in next year's primary, NorthJersey.com reported.
An adverse ruling could also lower the state's bond rating, meaning it will cost more to borrow money. A state appeals court agreed with a group of retirees who say those cost-of-living adjustments were promised when they took state jobs, NorthJersey.com said.
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