Sponsored by:
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
SYNOPSIS
Permits PERS member to retire while holding elected office.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the retirement of certain elected officials in the Public Employees' Retirement System and supplementing P.L.1954, c.84 (C.43:15A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding any provision of P.L.1954, c.84 (C.43:15A-1 et seq.) to the contrary, and except as may be otherwise provided in P.L.1972, c.167 (C.43:15A-135 et seq.), a member of the retirement system shall be eligible to retire while holding public office to which the member was elected and receiving the full salary for that office if the member's retirement allowance is not based solely on the member's service in the public office to which the member was elected. After the member retires, no contributions shall be required of the member covering that service in the public office. A member who retires while holding public office to which the member was elected shall not be paid a salary or stipend for service as an elected official in that public office for a period of one year following the member's date of retirement.
2. This act shall take effect immediately.
STATEMENT
This bill provides that a member of the Public Employees' Retirement System (PERS) may retire while holding public office to which the member was elected and receiving the full salary for that office if the member's retirement allowance is not based solely on the member's service in the public office to which the member was elected. After the member retires, no contributions would be required of the member covering that service in elective public office. Under the bill, a member who retires while holding public office to which the member was elected would not be paid a salary or stipend for service as an elected official in that public office for a period of one year following the member's date of retirement.
Under current law, if a member of PERS is also an elected official and retires from the member's State employment, the member would be required to not only retire from the State employment but also retire from the elected position in order to collect the member's pension. This bill would prevent a volunteer or paid elected official from being forced to retire from an elected position in order to receive the member's pension from another PERS-eligible position.
This bill would reenact N.J.S.A.43:15A-47.2, which was repealed by P.L.2011, c.78, a law that made various changes to pension and health care benefits for public employees. Prior to the repeal, N.J.S.A.43:15A-47.2 permitted PERS members to retire while holding public office, except that the former law did not contain a provision prohibiting a member who retires while holding public office from receiving a salary or stipend for a period of one year following the member's date of retirement.