Court sides with NJ judges in pension dispute
Headline Legal News
New Jersey's Supreme Court dealt a partial defeat to one of Gov. Chris Christie's signature legislative accomplishments Tuesday when it ruled that the state's judges don't have to contribute more to their pensions and health benefits. A leading state lawmaker immediately said the battle over the matter would continue.
The narrow 3-2 decision sided with a legal challenge filed last year by a state Superior Court judge in Hudson County who argued that the law imposing the pension and health care benefits changes violated a part of the state constitution that set judges' salaries and said they cannot be reduced.
The justices noted in their ruling that without a corresponding salary increase, the increased contributions would eventually cost judges at least $17,000 annually in take-home pay, amounting to a pay cut of more than 10 percent.
Christie, a Republican, had worked with the Democratic-controlled Legislature to pass the law last year. It affects hundreds of thousands of government workers around the state in addition to between 400 and 500 sitting judges and justices.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.