Bill Text: NJ A1627 | 2018-2019 | Regular Session | Introduced
Bill Title: Provides that PERS or PFRS member who continues to be volunteer firefighter or emergency services worker after retirement with employer from whom member retires has bona fide severance for compliance with State and federal law.
Spectrum: Bipartisan Bill
Status: (Passed) 2018-08-17 - Approved P.L.2018, c.96. [A1627 Detail]
Download: New_Jersey-2018-A1627-Introduced.html
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Assemblywoman HOLLY T. SCHEPISI
District 39 (Bergen and Passaic)
Assemblyman ANTHONY M. BUCCO
District 25 (Morris and Somerset)
Assemblyman ROBERT AUTH
District 39 (Bergen and Passaic)
Assemblyman JOE DANIELSEN
District 17 (Middlesex and Somerset)
Assemblyman JOHN DIMAIO
District 23 (Hunterdon, Somerset and Warren)
Co-Sponsored by:
Assemblyman Space, Assemblywoman N.Munoz, Assemblyman Johnson and Assemblywoman Chaparro
SYNOPSIS
Provides that PERS or PFRS member who continues to be volunteer firefighter or emergency services worker after retirement with employer from whom member retires has bona fide severance for compliance with State and federal law.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning retirement from employment covered by the Public Employees' Retirement System and the Police and Firemen's Retirement System, and supplementing P.L.1954, c.84 (C.43:15A-1 et seq.) and P.L.1944, c.255 (C.43:16A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The retirement of a member of the Public Employees' Retirement System, established pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.), who (1) on the date of retirement has attained the service retirement age applicable to that member and is a volunteer firefighter or first aid worker, rescue squad worker, or emergency medical technician serving as a volunteer with the same employer from whose employment the member retires; and (2) remains a volunteer firefighter or first aid worker, rescue squad worker, or emergency medical technician serving as a volunteer after the date of retirement, shall be a bona fide severance from employment, notwithstanding that the retired employee maintains the relationship of a volunteer firefighter or first aid worker, rescue squad worker, or emergency medical technician serving as a volunteer with the same employer from whose employment the member retired. This act shall be effective if the qualified status of the retirement system under federal law can be maintained upon its application, and such modifications to the system as may be available shall be made to allow for its application.
Notwithstanding any other provisions of law to the contrary, the provisions of this section shall not be construed to permit a paid firefighter employed by a part-paid fire department to serve as a volunteer with the department from which the paid firefighter retired.
2. The retirement of a member of the Police and Firemen's Retirement System, established pursuant to P.L.1944, c.255 (C.43:16A-1 et seq.), who (1) on the date of retirement has attained the service retirement age applicable to that member and is a volunteer firefighter or first aid worker, rescue squad worker, or emergency medical technician serving as a volunteer with the same employer from whose employment the member retires; and (2) remains a volunteer firefighter or first aid worker, rescue squad worker, or emergency medical technician serving as a volunteer after the date of retirement, shall be a bona fide severance from employment, notwithstanding that the retired employee maintains the relationship of a volunteer firefighter or first aid worker, rescue squad worker, or emergency medical technician serving as a volunteer with the same employer from whose employment the member retired. This act shall be effective if the qualified status of the retirement system under federal law can be maintained upon its application, and such modifications to the system as may be available shall be made to allow for its application.
Notwithstanding any other provisions of law to the contrary, the provisions of this section shall not be construed to permit a paid firefighter employed by a part-paid fire department to serve as a volunteer with the department from which the paid firefighter retired.
3. This act shall take effect immediately.
STATEMENT
This bill allows certain retiring members of the Public Employees' Retirement System (PERS) and the Police and Firemen's Retirement System (PFRS) to retain emergency management volunteer status with the employer from whom they retire. Specifically, the bill allows retiring members to retain volunteer firefighter, first aid worker, rescue squad worker, or emergency medical technician positions.
Under the bill, the retirement of a member of PERS or PFRS, who (1) on the date of retirement has attained the service retirement age applicable to that member and is a volunteer firefighter, first aid worker, rescue squad worker, or emergency medical technician with the same employer from whose employment the member retires; and (2) remains a volunteer firefighter, first aid worker, rescue squad worker, or emergency medical technician after retirement, will be considered a bona fide severance from employment. Service retirement age for PERS members enrolled before November 1, 2008 is age 60. It is age 62 for those enrolled on or after November 1, 2008 and age 65 for those enrolled on or after June 28, 2011. Service retirement age for PFRS members is age 55.
A regulation of the Division of Pensions and Benefits in the Department of the Treasury, in compliance with the federal Internal Revenue Code, provides, "'Bona fide severance from employment' means a complete termination of the employee's employment relationship with the employer for a period of at least 180 days." N.J.A.C.17:1-17.14(a)2. The division has advised local governments that a retired employee's return to the same employer in any capacity, including as a volunteer, will invalidate the retirement because the employer/employee relationship has not been completely severed.
The bill allows persons with a pre-existing volunteer relationship as a firefighter, first aid worker, rescue squad worker, or emergency medical technician with their employer to retire from service covered by PERS or PFRS and continue to serve that employer as a volunteer.
The bill also provides that it will be effective if the qualified status of PERS and PFRS under federal law can be maintained upon its application. The bill directs the division to make modifications to the system to allow for the bill's application while maintaining the qualified status of the plans.
The bill also prohibits paid firefighters employed by part-paid fire departments which utilize both career and volunteer firefighters from volunteering with the department from which they retired.
