OFFSETS IN WORKERS' COMPENSTAION FOR ORDINARY PENSIONSIn Rosales v. State of New Jersey the State, Treasury Department, Bureau of Risk Management sought to avoid its obligation for weekly total disability payments because Ms. Rosales received an ordinary disability pension from the Public Employees Retirement System or PERS. This was an attempt at a novel application and if correct would affect other State employees as members of most other government pension systems. This decision would also affect all workers' compensation disability classes, not only those receiving total disability.Risk Management argued that Ms. Rosales received an ordinary disability pension for the same injury; thus, it did not have to pay workers' compensation benefits pursuant to N.J.S.A. 34:15-29 and Bunk v, Port Authority of New York and New Jersey. However, PERS does not issue detailed medical findings when awarding an ordinary disability pension. If Risk Management was allowed to take a dollar for dollar offset due to the receipt of the ordinary disability pension, this would terminate the payment of their workers' compensation award to Ms. Rosales. There are three types of pension benefits. The first is for retirement over 55 years of age. The second is an accidental disability pension. And, the third is an ordinary disability pension. There are nine separate payment options for these pension benefits. Each type of pension has two components; annuity and State fund. Each type of pension also has different income tax consequences. Accidental disability pensions are tax exempt as are workers' compensation awards. The ordinary disability pension is subject to state and federal income taxes. Until 1971, receipt of an accidental or ordinary disability pension would bar receipt of a workers' compensation award or vice versa. The employee made an election on which benefits to receive. However, this could cause hardships for the injured worker if the workers' compensation carrier contested the claim. The worker would then be forced to accept the pension benefits. In 1971 the pension statutes were amended to avoid this problem. The result of this amendment was that public employees could receive the pension benefits and workers' compensation benefits but the pension benefits would be reduced by the actuarial equivalent of the workers' compensa- |
WHAT'S NEWGolden, Rothschild, Spagnola, Lundell, Levitt and Boylan, P. C. is pleased to announce that:Robert Rosenwasser, Esquire has joined our firm as "Of Counsel". Bob, former Managing Partner with Lanfrit, Liscinski & Rosenwasser in Somerset, New Jersey will be working in the defense litigation area. Bob attended Rutgers College in New Brunswick, New Jersey and graduated from and obtained his Juris Doctorate Degree from Rutgers Law School in 1975. Bob has full range of Civil, Trial and Appellate experience including experience in the areas of products liability, construction accidents, medical malpractice, premises liability and automobile matters involving wrongful death, brain injury, paralysis, severe fractures and other personal injuries. He also has experience in commercial litigation including construction defect claims, insurance coverage issues and general liability, professional liability, disability, environmental areas as well as breach of contract. Bob also has experience in law against discrimination cases including representing clients in race, sex, age and disability claims. Bob was admitted in New Jersey, 1975, United States District Court for the District of New Jersey, 1975, United States Court of Appeals for the Third Circuit, 1981 and Florida, 1991. Bob has also served as a Municipal Township Attorney as well as a Municipal Court Judge for various local municipalities. Bob has participated in the Supreme Court District Ethics Committee for Somerset County and as a commercial arbitrator for the American Arbitration Association. GOLF OUTINGOur Annual Golf Outing is scheduled for May 8, 2003. Each year a local charity is the recipient of a donation as a result of our hole in one contest. This years recipient is the Shannon Daley Memorial Fund which has been established to help local area residents who are battling serious illnesses. |