Bill Text: NJ A5158 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides TPAF members and certain retirees same benefits provided to members enrolled in retirement system before July 1, 2007.
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced) 2025-01-14 - Introduced, Referred to Assembly State and Local Government Committee [A5158 Detail]
Download: New_Jersey-2024-A5158-Introduced.html
Sponsored by:
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
Assemblywoman LINDA S. CARTER
District 22 (Somerset and Union)
SYNOPSIS
Provides TPAF members and certain retirees same benefits provided to members enrolled in retirement system before July 1, 2007.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the benefits provided to members and certain retirees of the Teachers' Pension and Annuity Fund and supplementing N.J.S.18A:66-1 et seq.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of P.L.2007, c.92; P.L.2007, c.103; P.L.2008, c.89; P.L.2010, c.1; P.L.2010, c.3; P.L.2011, c.78; or any other law, rule, or regulation to the contrary, all current, non-retired members of the Teachers' Pension and Annuity Fund shall be entitled to and shall receive the same benefits received by members of the retirement system who enrolled in the system prior to July 1, 2007. Notwithstanding the provisions of any other law, rule, or regulation to the contrary, a member of the Teachers' Pension and Annuity Fund who files an application for retirement after the effective date of this act, P.L. , c. (C. ) (pending before the Legislature as this bill), shall be entitled to and shall receive the same retirement benefits received by members of the retirement system who enrolled in the system prior to July 1, 2007.
b. Notwithstanding the provisions of any other law, rule, or regulation to the contrary, all employees of public employers who earn more than the minimum salary requirements but do not meet the minimum work hours eligibility requirements on the effective date of this act, P.L. , c. (C. ) (pending before the Legislature as this bill), pursuant N.J.S.18A:66-1 et seq. shall be enrolled as members of the Teachers' Pension and Annuity Fund in accordance with the provisions of subsection a. of this section. The employer shall promptly process the compulsory enrollment of each affected employee no later than 60 days following the effective date of this act, P.L. , c. (C. ) (pending before the Legislature as this bill).
c. (1) Employees who are enrolled as participants of the Defined Contribution Retirement Program established pursuant to P.L.2007, c.92 (C.43:15C-1 et seq.) on the effective date of this act, P.L. , c. (C. ) (pending before the Legislature as this bill), shall be enrolled in the Teachers' Pension and Annuity Fund pursuant to the provisions of subsection a. of this section, unless they opt out pursuant to this subsection. Upon enrollment, the employee shall receive an automatic transfer of all years of service credit from the Defined Contribution Retirement Program to the Teachers' Pension and Annuity Fund. Any years of service credit transferred to the Teachers' Pension and Annuity Fund from the Defined Contribution Retirement Program pursuant to this subsection shall be used to qualify the member for deferred retirement, early retirement, service retirement, disability retirement, veteran's retirement, health benefits enumerated under the School Employees' Health Benefits Program, and other benefits as determined to be appropriate by the Division of Pensions and Benefits; provided, however, that any years of service credit transferred to the Teachers' Pension and Annuity Fund from the Defined Contribution Retirement Program pursuant to this subsection shall not be used to calculate the amount of the pension benefits the member would receive in retirement as set forth by N.J.S.18A:66-1 et seq. A member's prior contributions into the Defined Contribution Retirement Program shall not be transferred into the Teachers' Pension and Annuity Fund and shall remain in the program's fund.
(2) Any employees enrolled as participants of the Defined Contribution Retirement Program and whose years of service credit are transferred to the Teachers' Pension and Annuity Fund pursuant to paragraph (1) of this subsection shall receive a notice of the automatic transfer of service credit no later than 60 days following the effective date of this act, P.L. , c. (C. ) (pending before the Legislature as this bill).
(3) Any employees enrolled as participants of the Defined Contribution Retirement Program who do not wish to become enrolled as a member of the Teachers' Pension and Annuity Fund pursuant to this subsection shall be permitted to opt out of joining the Teachers' Pension and Annuity Fund by providing a notice to their employer no later than six months of receiving the notice outlined in paragraph (2) of this subsection. Any employees who opt out shall remain participants of the Defined Contribution Retirement Program.
d. Notwithstanding the provisions of any other law, rule, or regulation to the contrary, any members of the Teachers' Pension and Annuity Fund receiving long term disability insurance pursuant to section 10 of P.L.2010, c.3 (C.18A:66-39.1), shall be considered eligible to apply for an ordinary or accidental disability retirement allowance pursuant to N.J.S.18A:66-1 et seq. If the member elects to apply for disability retirement benefits under the Teachers' Pension and Annuity Fund the member shall do so no later than two calendar years following the effective date of this act, P.L. , c. (C. ) (pending before the Legislature as this bill).
e. Any changes to the early retirement, deferred retirement, service retirement, and maximum base salary resulting from the provisions of this act shall only apply to members who begin processing a retirement application after the effective date of this act, P.L. , c. (C. ) (pending before the Legislature as this bill).
2. This act shall take effect immediately.
STATEMENT
This bill removes the membership tiers established in the Teachers' Pension and Annuity Fund (TPAF) and transfers all current non-retired members of TPAF to the membership tier referred to as "Tier 1" by the Division of Pensions and Benefits. All transferred members will be considered eligible for any benefits associated with Tier 1.
Under the bill, employees of public employers who earn more than the minimum salary requirement, but do not currently meet the minimum hour eligibility requirements, will be considered eligible to be enrolled as members of TPAF. The employer is to process the compulsory enrollment of each affected employee within two months following the enactment of the bill.
Any affected employees who are currently enrolled as participants of the Defined Contribution Retirement Program (DCRP) will be eligible for an automatic transfer of all years of service credit to TPAF, if the employee elects to transfer their membership from DCRP to TPAF. Any years of service credit transferred to TPAF from DCRP will be used to qualify members for retirement and health benefits associated with TPAF, but will not be used to calculate the amount of pension benefit. A participant's prior contributions into the DCRP will not be transferred into TPAF and will remain in the fund. The employee will receive a notice of the transfer of service credit to TPAF within two months following the enactment of the bill. Upon receiving the notice, the affected employee has six months to notify their employer if they do not wish to become enrolled as a member and transfer their service credit to TPAF. Employees in the DCRP who opt out of the transfer will remain in the DCRP. Additionally, any members of TPAF who are receiving long term disability insurance will be eligible to apply for disability retirement as long as they apply within two calendar years following the enactment of the bill.
Any changes to the early retirement, deferred retirement, service retirement, and maximum base salary resulting from the transfer of members to Tier 1 of TPAF will only affect members who begin processing a retirement application after the bill is enacted.
