Sponsored by:
Assemblyman JOSEPH CRYAN
District 20 (Union)
Assemblywoman LINDA STENDER
District 22 (Middlesex, Somerset and Union)
SYNOPSIS
Requires annual notice to local employers in PERS and PFRS include contribution rate and calculation for current year, preceding two years, and projection for subsequent two years.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning notification of the pension contribution rate for local employers in the Public Employees' Retirement System and the Police and Firemen's Retirement System and amending P.L.1954, c.84 and P.L.1944, c.255.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 68 of P.L.1954, c.84 (C.43:15A-68) is amended to read as follows:
68. a. The Public Employees' Retirement System shall certify to the chief fiscal officer of the employer the rates of contributions payable by members. The system shall further certify, no later than December 31 each year, the contributions, including the accrued liability contribution similar to the State accrued liability contribution, payable by the employer to the contingent reserve fund on behalf of these members, and a pro rata share of the cost of the administration of the retirement system, based upon the payroll of the members who are employees of the employer. The initial actuarial expense incident to the determination of the accrued liability contribution payable by the employer shall be paid by the employer. The amount certified by the system as payable by such employer to the contingent reserve fund shall be included in the next budget subsequent to the certification by the system. The treasurer or corresponding officer shall pay to the State Treasurer no later than April 1 of the State's fiscal year in which payment is due the amount of the employer's charges so certified. If payment of the full amount of such obligation is not made within 30 days after April 1, interest at the rate of 10% per annum shall commence to run against the unpaid balance thereof on the first day after such thirtieth day. The treasurer or corresponding officer shall also pay to the State Treasurer the amount of the deductions from the compensation of the members who are employees of the employer. The State Treasurer shall credit these amounts to the appropriate fund or account.
b. The certification to be provided pursuant to subsection a. of this section shall include information concerning the employer contribution rate and amount for the previous two years, a forecast of the expected employer contribution rate for the subsequent two years, and a description of the demographic, investment income, salary, and other assumptions made in the calculation of the current year's employer contribution rate and amount.
(cf: P.L.1992, c.41, s.17)
2. Section 15 of P.L.1945, c.148 (C.43:16A-31) is amended to read as follows:
15. a. The board of trustees shall certify to the chief financial officer of the county, municipality or political subdivision thereof, adopting the act, on or before the first day of February following the adoption of the act, for the then current fiscal year and thereafter on or before the first of December of each year for the ensuing fiscal year, the normal contribution of such county, municipality or political subdivision and also its contribution for accrued liability for prior service credits.
b. The certification to be provided pursuant to subsection a. of this section shall include information concerning the employer contribution rate and amount for the previous two years, a forecast of the expected employer contribution rate for the subsequent two years, and a description of the demographic, investment income, salary, and other assumptions made in the calculation of the current year's employer contribution rate and amount.
(cf: P.L.1945, c.148, s.15)
3. This act shall take effect immediately.
STATEMENT
Under current law, the Public Employees' Retirement System and the Police and Firemen's Retirement System must annually certify to participating local employers the rates and amounts of contributions payable by the employer into the retirement systems. This bill requires such notice to contain additional information. Under the bill, the annual certification would include information concerning the employer contribution rate and amount for the previous two years, a forecast of the expected employer contribution rate for the subsequent two years, and a description of the demographic, investment, salary, and other assumptions made in the calculation of the current year's employer contribution rate and amount.