As reported by NJ.com, State Senate President Stephen Sweeney and labor leaders defended Sweeney’s proposal to constitutionally enforce payments into the public pension system against arguments it’s a gift to special interests that will shackle New Jersey’s finances.  The scrap between Sweeney and labor leaders versus Senate Minority Leader Tom Kean, Jr. and business lobbyists centered on what would be worse:  a mandated pension contribution that would eat up so much money the State couldn’t respond to fiscal emergencies or a pension system that continues hurtling toward insolvency.

Sweeney, the Democrat leading the charge on the amendment, told the Senate State Government Committee it’s in everyone’s interest to pay the bill now.  Should a pension fund run out of money, the State would have to pay retirees’ pension benefits out of pocket, he said.  “If we don’t do this, by 2026 or 2027, when the pensions go broke, it’s nine or ten billion dollars.  And that’s coming out of the budget.  Directly out of the budget,” Sweeney said.  “That’s armageddon.”  Kean said the amendment will inevitably force budget cuts or tax increases.  Democrats have previously tried to raise money for pensions through tax increases on corporations and the State’s wealthiest residents.

Sweeney’s proposed amendment would require the State to make increasing payments into the pension system, reaching the full payment recommended by actuaries by 2021.  Even modest growth in State revenues, 3.4 percent, can absorb the higher payments, he’s said.  The amendment is Democrats’ response to a State Supreme Court ruling that said Governor Chris Christie didn’t have to make payments into the pension system that were outlined in a landmark reform law he signed five years ago.  The amendment would require bigger payments be phased in, but at a slower pace than what the law had promised.  It would also force the governor to make those payments into the system quarterly, rather than at the end of the year. The proposed amendment would need to be approved by the voters before becoming a part of the State Constitution.

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Photo of Donald C. Barbati Donald C. Barbati

Donald C. Barbati is a shareholder of Crivelli, Barbati & DeRose, L.L.C. His primary practice revolves around the representation of numerous public employee labor unions in various capacities to include contract negotiation, unfair labor practice litigation, contract grievance arbitration, and other diverse issues…

Donald C. Barbati is a shareholder of Crivelli, Barbati & DeRose, L.L.C. His primary practice revolves around the representation of numerous public employee labor unions in various capacities to include contract negotiation, unfair labor practice litigation, contract grievance arbitration, and other diverse issues litigated before the courts and administrative tribunals throughout the State of New Jersey. In addition, Mr. Barbati also routinely represents individuals in various types of public pension appeals, real estate transactions, and general litigation matters. He is a frequent contributor to the New Jersey Public Safety Officers Law Blog, a free legal publication designed to keep New Jersey public safety officers up-to-date and informed about legal issues pertinent to their profession. During his years of practice, Mr. Barbati has established a reputation for achieving favorable results for his clients in a cost-efficient manner.

Mr. Barbati has also handled numerous novel legal issues while representing New Jersey Public Safety Officers. Most notably, he served as lead counsel for the Appellants in the published case In re Rodriguez, 423 N.J. Super. 440 (App. Div. 2011). In that case, Mr. Barbati successfully argued on behalf of the Appellants, thereby overturning the Attorney General’s denial of counsel to two prison guards in a civil rights suit arising from an inmate assault. In the process, the Court clarified the standard to be utilized by the Attorney General in assessing whether a public employee is entitled to legal representation and mandated that reliance must be placed on up-to-date information.

Prior to becoming a practicing attorney, Mr. Barbati served as a judicial law clerk to the Honorable Linda R. Feinberg, Assignment Judge of the Superior Court of New Jersey, Mercer Vicinage. During his clerkship Mr. Barbati handled numerous complex and novel substantive and procedural issues arising from complaints in lieu of prerogative writs, orders to show cause, and motion practice. These include appeals from decisions by planning and zoning boards and local government bodies, bidding challenges under the Local Public Contract Law, Open Public Records Act requests, the taking of private property under the eminent domain statute, and election law disputes. In addition, Mr. Barbati, as a certified mediator, mediated many small claims disputes in the Special Civil Part.

Mr. Barbati received a Bachelor of Arts degree in history, magna cum laude, from Rider University in Lawrenceville, New Jersey. Upon graduating, Mr. Barbati attended Widener University School of Law in Wilmington, Delaware. In 2007, he received his juris doctorate, magna cum laude, graduating in the top five percent of his class. During law school, Mr. Barbati interned for the Honorable Joseph E. Irenas, Senior United States District Court Judge for the District of New Jersey in Camden, New Jersey, assisting on various constitutional, employment, and Third Circuit Court of Appeals litigation, including numerous civil rights, social security, and immigration cases.