Bill Text: NJ A116 | 2012-2013 | Regular Session | Introduced
Bill Title: Eliminates PERS membership for current and future part-time elected and appointed officials.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly State Government Committee [A116 Detail]
Download: New_Jersey-2012-A116-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblywoman AMY H. HANDLIN
District 13 (Monmouth)
SYNOPSIS
Eliminates PERS membership for current and future part-time elected and appointed officials.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning membership in the Public Employees' Retirement System of New Jersey by certain elected and appointed officials and amending and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.1954, c.84 (C.43:15A-7) is amended to read as follows:
7. There is hereby established the Public Employees' Retirement System of New Jersey in the Division of Pensions and Benefits of the Department of the Treasury. The membership of the retirement system shall include:
a. The members of the former "State Employees' Retirement System of New Jersey" enrolled as such as of December 30, 1954, who shall not have claimed for refund their accumulated deductions in said system as provided in this section;
b. Any person becoming an employee of the State or other employer after January 2, 1955 and every veteran, other than a retired member who returns to service pursuant to subsection b. of section 27 of P.L.1966, c.217 (C.43:15A-57.2) and other than those whose appointments are seasonal, becoming an employee of the State or other employer after such date, including a temporary employee with at least one year's continuous service; and
c. Every employee veteran in the employ of the State or other employer on January 2, 1955, who is not a member of any retirement system supported wholly or partly by the State.
d. Membership in the retirement system shall be optional for elected officials other than veterans, [and] except that on and after the effective date of P.L. , c. (pending before the Legislature as this bill), part-time elected or appointed officials shall not be eligible for membership and enrollment in the retirement system based on service in their part-time elective or appointive public office. Part-time elected or appointed officials enrolled in the retirement system solely on the basis of their part-time elective or appointive office as of the effective date of P.L. , c. (pending before the Legislature as this bill) shall terminate their membership in the retirement system pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), subject to the same privileges as members retiring or withdrawing from the system under ordinary circumstances, whichever may be applicable. Membership in the retirement system shall be optional for school crossing guards, who having become eligible for benefits under other pension systems are so employed on a part-time basis. Any such part-time school crossing guard who is eligible for benefits under any other pension system and who was hired as a part-time school crossing guard prior to March 4, 1976, may at any time terminate his membership in the retirement system by making an application in writing to the board of trustees of the retirement system. Upon receiving such application, the board of trustees shall terminate his enrollment in the system and direct the employer to cease accepting contributions from the member or deducting from the compensation paid to the member. State employees who become members of any other retirement system supported wholly or partly by the State as a condition of employment shall not be eligible for membership in this retirement system. Notwithstanding any other law to the contrary, all other persons accepting employment in the service of the State shall be required to enroll in the retirement system as a condition of their employment, regardless of age. No person in employment, office or position, for which the annual salary or remuneration is fixed at less than $1,500.00, shall be eligible to become a member of the retirement system.
e. Membership of any person in the retirement system shall cease if he shall discontinue his service for more than two consecutive years.
f. The accumulated deductions of the members of the former "State Employees' Retirement System" which have been set aside in a trust fund designated as Fund A as provided in section 5 of this act and which have not been claimed for refund prior to February 1, 1955 shall be transferred from said Fund A to the Annuity Savings Fund of the Retirement System, provided for in section 25 of this act. Each member whose accumulated deductions are so transferred shall receive the same prior service credit, pension credit, and membership credit in the retirement system as he previously had in the former "State Employees' Retirement System" and shall have such accumulated deductions credited to his individual account in the Annuity Savings Fund. Any outstanding obligations of such member shall be continued.
g. Any school crossing guard electing to terminate his membership in the retirement system pursuant to subsection d. of this section shall, upon his request, receive a refund of his accumulated deductions as of the date of his appointment to the position of school crossing guard. Such refund of contributions shall serve as a waiver of all benefits payable to the employee, to his dependent or dependents, or to any of his beneficiaries under the retirement system.
h. A temporary employee who is employed under the federal Job Training Partnership Act, Pub.L.97-300 (29 U.S.C. s.1501) shall not be eligible for membership in the system. Membership for temporary employees employed under the federal Job Training Partnership Act, Pub.L.97-300 (29 U.S.C. s.1501) who are in the system on September 19, 1986 shall be terminated, and affected employees shall receive a refund of their accumulated deductions as of the date of commencement of employment in a federal Job Training Partnership Act program. Such refund of contributions shall serve as a waiver of all benefits payable to the employee, to his dependent or dependents, or to any of his beneficiaries under the retirement system.
i. Membership in the retirement system shall be optional for a special service employee who is employed under the federal Older American Community Service Employment Act, Pub.L.94-135 (42 U.S.C.s.3056). Any special service employee employed under the federal Older American Community Service Employment Act, Pub.L.94-135 (42 U.S.C.s.3056), who is in the retirement system on the effective date of P.L.1996, c.139 may terminate membership in the retirement system by making an application in writing to the board of trustees of the retirement system. Upon receiving the application, the board shall terminate enrollment in the system and the member shall receive a refund of accumulated deductions as of the date of commencement of employment in a federal Older American Community Service Employment Act program. This refund of contributions shall serve as a waiver of all benefits payable to the employee, to any dependent or dependents, or to any beneficiary under the retirement system.
j. An employee of the South Jersey Port Corporation who was employed by the South Jersey Port Corporation as of the effective date of P.L.1997, c.150 (C.34:1B-144 et al.) and who shall be re-employed within 365 days of such effective date by a subsidiary corporation or other corporation, which has been established by the Delaware River Port Authority pursuant to subdivision (m) of Article I of the compact creating the Delaware River Port Authority (R.S.32:3-2), as defined in section 3 of P.L.1997, c.150 (C.34:1B-146), shall be eligible to continue membership while an employee of such subsidiary or other corporation.
(cf: P.L.1997, c.150, s.23)
2. Section 1 of P.L.1972, c.167 (C.43:15A-135) is amended to read as follows:
1. Notwithstanding the provisions of P.L.1954, c.84, s.7d (C.43:15A-7d), all members of the Legislature shall become members of the retirement system, subject to all benefits and requirements of membership, except that on and after the effective date of P.L. , c. (pending before the Legislature as this bill), members of the Legislature shall not be eligible for membership and enrollment in the retirement system based on service in their elective office. Members of the Legislature enrolled in the retirement system solely on the basis of their part-time service in the Legislature as of the effective date of P.L. , c. (pending before the Legislature as this bill) shall terminate their membership in the retirement system pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), subject to the same privileges as members retiring or withdrawing from the system under ordinary circumstances, whichever may be applicable.
(cf: P.L.1972, c.167, s.1)
3. Within 30 days of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Division of Pensions and Benefits in the Department of the Treasury shall cause the membership in the Public Employees' Retirement System of New Jersey of any member of the retirement system enrolled solely on the basis of service in a part-time elective or appointive office to be terminated. For the purposes of this section and the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill):
a. "part-time basis" means service in an elective or appointive office that does not require the elected or appointed official to devote full time to the duties of the office, allowing the elected or appointed official to pursue or engage in other public service, business, occupation, or gainful employment; and
b. "appointive official" means any individual appointed to serve, on a part-time basis, on the governing body of any State, county, municipal, or independent board, commission, or authority comprised of two or more members and considered a participating employer in the Public Employees' Retirement System of New Jersey.
Any member of the retirement system subject to termination pursuant to this act shall be entitled to the same privileges as members retiring or withdrawing from the system under normal circumstances, whichever may be applicable.
4. This act shall take effect immediately.
STATEMENT
This bill eliminates eligibility for membership in the Public Employees' Retirement System (PERS) for members of the Legislature and other elected or appointed officials serving on a part-time basis when PERS membership is based on the elective or appointive office.
Under the bill, "part-time basis" means service in an elective or appointive office that does not require the elected or appointed official to devote full time to the duties of the office, allowing the elected or appointed official to pursue or engage in other public service, business, occupation, or gainful employment, and "appointive official" means any individual appointed to serve, on a part-time basis, on the governing body of any State, county, municipal, or independent board, commission, or authority comprised of two or more members and considered a participating employer in the Public Employees' Retirement System of New Jersey.
Under existing law, PERS membership is mandatory for members of the Legislature, but it is optional for other elected officials other than veterans. Under the bill, members of the Legislature and other elected and appointed officials who serve on a part-time basis in their elective or appointive office and who are enrolled in the PERS as of the effective date of the bill on the basis of their elective or appointive service would be required to terminate membership but would be entitled to the same privileges as members retiring or withdrawing from the system under normal circumstances, whichever may be applicable to the member. Legislators and other elected or appointed officials beginning service after the effective date of the bill would not be eligible for enrollment in the PERS on the basis of their part-time elective or appointive office.
The bill's provisions are based upon testimony and other information received by the sponsor in his capacity as a member of the Joint Legislative Committee on Public Employee Benefits Reform.
