Bill Text: NJ A2840 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides service credit for PERS member for former membership in transit retirement program.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly State and Local Government Committee [A2840 Detail]
Download: New_Jersey-2024-A2840-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
Co-Sponsored by:
Assemblywoman Murphy
SYNOPSIS
Provides service credit for PERS member for former membership in transit retirement program.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning service credit for certain public employees in the Public Employees' Retirement System and amending P.L.1954, c.84.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 39 of P.L.1954, c.84 (C.43:15A-39) is amended to read as follows:
39. a. In computing for retirement purposes the total service of a member about to be retired, the retirement system shall credit the member with the time of all service rendered by the member since that member's last enrollment, and in addition with all the service to which the member is entitled and with no other service. Except as otherwise provided in this act, this service credit shall be final and conclusive for retirement purposes unless the member shall discontinue service for more than two consecutive years. In the case of a member for whom compensation is defined in paragraph (2) of subsection r. of section 6 of P.L.1954, c.84 (C.43:15A-6), the retirement system shall credit the member with the time of all service rendered by the member during the part of any year that the member was a participant of the Defined Contribution Retirement Program, pursuant to paragraph (5) of subsection a. of section 2 of P.L.2007, c.92 (C.43:15C-2) as amended by section 12 of P.L.2007, c.103, and making contributions to that program.
For the purpose of computing service for retirement purposes, the board shall fix and determine by appropriate rules and regulations how much service in any year shall equal a year of service and a part of a year of service. Not more than one year shall be credited for all service in a calendar year. A member may purchase credit for time during which the member shall have been absent on an official leave without pay. The credit shall be purchased for a period of time equal to:
(1) three months or the duration of the leave, whichever is less; or
(2) if the leave was due to the member's personal illness, two years or the duration of the leave, whichever is less; or
(3) the period of leave that is specifically allowed for retirement purposes by the provisions of any law of this State.
The purchase shall be made in
the same manner and be subject to the same terms and conditions provided for
the purchase of previous membership service credit by section 8 of P.L.1954,
c.84 (C.43:15A-8). In computing the service or in computing final compensation,
no time during which a member was in employment, office, or position for which the
annual salary or remuneration was fixed at less than $500.00 in the case of
service rendered prior to November 6, 1986, or for which the annual salary or
remuneration, or the number of hours of work, is fixed at less than that which
was required for membership pursuant to section 7 of P.L.1954, c.84
(C.43:15A-7) as applicable to the member in the case of service rendered on or
after that date, shall be credited. In computing the service or in computing
final compensation, no time during which a member was in employment, office, or
position for which the hours of work were fewer per week than those required
for membership pursuant to subsection d. of section 7 of P.L.1954, c.84
(C.43:15A-7) after the effective date of P.L.2010, c.1 shall be credited, unless
the member shall have been a member since that effective date continuously. In
the case of a veteran member credit shall be given for service rendered prior
to January 2, 1955, in an employment, office or position if the annual salary
or remuneration therefor was fixed at not less than $300.00 and such service
consisted of the performance of the full duties of the employment, office or
position.
b. An active member of the retirement system who was a member of the Transit Employees' Retirement Program of the New Jersey Transit Corporation, created and established pursuant to the "New Jersey Public Transportation Act of 1979," P.L.1979, c.150 (C.27:25-1 et seq.), on or before July 30, 2006, shall be credited with one year, and any part thereof, of service in the system for each 3.5 years, and any part thereof, of service credited in that program if the program transfers into the system all of the funds from that program that represent each year, and part thereof, of credited service in that program. Such transfer shall become effective upon the remittance to the retirement system by that program of all accumulated member's contributions, with interest, standing to the credit of the member and of that portion of the actuarial reserve accumulated on the member's account provided for by contributions to the program from the employer. Such transfers shall be made in accordance with and to the extent permitted by State and federal law.
Upon the transfer, no additional contributions by the member or a public employer shall be required for the service credited in the system under this subsection.
Upon receipt of the remittance, the service credit accrued in the program up to July 30, 2006 shall be credited in the system and shall be used to meet any service credit requirement for benefits under system.
If the member has withdrawn the member's contributions to the program or if all the specified funds cannot be transferred from the program to the system for any reason, the member shall not receive any service credit pursuant to this subsection.
This subsection shall not apply if the member has a vested right to retirement benefits in the program based in whole or in part upon the service credited in that program.
(cf: P.L.2010, c.1, s.4)
2. This act shall take effect immediately.
STATEMENT
Under this bill, a member of the Public Employees' Retirement System (PERS) who was a member, on or before July 30, 2006, of the Transit Employees' Retirement Program (TERP) of the New Jersey Transit Corporation would be credited with one year of service, or part thereof, in the PERS for each 3.5 years, or part thereof, of service credit in the TERP if the member and employer contributions are transferred from that program into the retirement system for those years of credited service.
