A new law in New Jersey has brought employee rights into question. The law, which is forcing current state employees to pay more for pension and health care, was approved to fix what supporting politicians called an unstable pension system.

Through the passing of the law, the governor and both parties in the state’s congress will reportedly save roughly $120 billion. But unions throughout the state are not happy and have filed a lawsuit because they believe their rights are being infringed upon.

The law, once in full swing, will affect 500,000 retired and active workers within the state. Its contents have taken away cost of living adjustments for pensions, meaning many retired individuals will end up with lower pension payments.

These factors have prompted unions across the state to file the lawsuit, which accuses the state government of violating employees’ contract rights as well as breaking promises of earned benefits to those that are already retired. A spokesperson for the governor defended his position by stating that the cuts were necessary to support the system itself.

Despite trying to save the system, the governor chose not to pay $3 billion to the pension system last year. This may have caused economic worries to grow for those relying on their pension income. One representative from a teacher’s union said that the new law has taken away pension rights for those that have already retired. Many feel as if they have been slighted by the new law. The lawsuit will be decided sometime in the future.

Source: Reuters, “New Jersey unions sue state over benefits changes,” Edith Honan, Sept. 1, 2011