Office of Legislative Services: Christie Cannot Invoke ‘State of Emergency’ To Cut Pensions

New Jersey and other states barred from declaring bankruptcy to escape pension debts, as Detroit did.

Despite his threat to take “extreme measures” to control rising pension costs, Gov. Chris Christie does not have the power to declare a fiscal “state of emergency” to make unilateral changes to the pension system, nor does New Jersey have the ability, like Detroit, to declare bankruptcy to get out from under its pension obligations, according to state and national authorities.

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