As reported by nj.com, a divided state employee benefits commission today backed a Republican proposal to rein in rising accidental disability claims but said lawmakers should remove a provision that unfairly punishes workers who are permanently injured on the job.

The GOP bill would reduce accidental disability pensions across all retirement systems to 40 percent of final salaries. Currently, police and firefighters on accidental disability, for example, receive two-thirds of their final salaries. The pension reduction would bring accidental disability benefits on par with those offered under the ordinary disability plan and take away a major financial incentive that is helping drive up applications, supporters argue.

But a majority of members on the Pension and Health Benefits Commission said merging the two benefits ignores an important distinction: accidental disability pensions are supposed to compensate workers permanently injured by traumatic events. Others argue there are still important distinctions between the two, such as accidental pensions are tax free and workers qualify for them from their first day on the job while it takes 10 years for workers to qualify for an ordinary pension.     

The proposed changes come on the heels of multiple media reports on how accidental disability pension applications and awards have spiked since two separate Supreme Court decisions in 2007 and 2008 broadened eligibility requirements. The rulings forced the state’s pension boards to consider slip and fall injuries as eligible, along with mental illness.

Overall, applications for accidental disability pensions were up 34 percent and awards were up 87 percent over the five years, according to the Treasury Department. The rate of approval also rose to 53 percent in 2011 from 38 percent in 2007. Payouts for accidental disability pensions also increased during this time by 33 percent from $98.8 million to $131.5 million compared to a 20 percent increase in ordinary pension payouts from $270.6 million to $323.1 million.

The bill, sponsored by Assemblymen Declan O’Scanlon and Gary Chiusano, would stiffen requirements by requiring applicants to also qualify for the more stringent federal workman’s compensation benefits. It would also penalize accidental disability pension beneficiaries if they get another job by reducing their pensions.

Tags: Accidental Disability, accidental disability retirement, accidental disability retirement benefits, Articles, change in accidental disability, GOP Proposal, Ordinary Disability, ordinary disability pension
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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.

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