Bill Text: NJ ACR85 | 2010-2011 | Regular Session | Introduced
Bill Title: Proposes amendment to State Constitution to establish standards that ensure public employee pension systems are financially sound.
Spectrum: Moderate Partisan Bill (Republican 6-1)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly State Government Committee [ACR85 Detail]
Download: New_Jersey-2010-ACR85-Introduced.html
ASSEMBLY CONCURRENT RESOLUTION No. 85
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman DECLAN J. O'SCANLON, JR.
District 12 (Mercer and Monmouth)
Assemblywoman CAROLINE CASAGRANDE
District 12 (Mercer and Monmouth)
Co-Sponsored by:
Assemblymen Biondi, Wolfe, Holzapfel, Assemblywoman Addiego and Assemblyman Rudder
SYNOPSIS
Proposes amendment to State Constitution to establish standards that ensure public employee pension systems are financially sound.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
A Concurrent Resolution proposing to amend Article VII, Section I of the Constitution of the State of New Jersey.
Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):
1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:
PROPOSED AMENDMENT
Amend Article VII, Section I by the addition of a new paragraph 7 to read as follows:
7. (1) The board of trustees of any State-administered retirement system or fund shall use consistent and generally-accepted actuarial standards, as established by the Governmental Accounting Standards Board or its successor, for the purpose of determining fund asset values, liabilities and annual employer contributions. Any modification of the assumptions or actuarial methodology at the direction of the State that changes asset values, obligations or annual contributions shall require public disclosure prior to adoption, including a financial impact analysis.
(2) The State and any local government entity participating in any State-administered retirement system or fund shall annually pay the full employer contribution as determined by the system or fund's actuaries. The full employer contribution shall include annual payments of the actuarially-determined normal pension contribution and payments of a portion of any unfunded accrued liability, as provided by law.
(3) Neither the Legislature, by law, nor the board of trustees of any State-administered retirement system or fund, shall authorize any early retirement incentive program for public employees that has a negative impact on, or creates an unfunded liability for, the system or fund.
2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Attorney General, not less than three months prior to the general election.
3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:
There shall be printed on each official ballot to be used at the general election, the following:
a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:
If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."
b. In every municipality the following question:
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CONSTITUTIONAL AMENDMENT TO PROVIDE STANDARDS FOR PUBLIC EMPLOYEE PENSION SYSTEMS |
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YES |
Shall the amendment to Article VII, Section I of the New Jersey Constitution, agreed to by the Legislature, providing that: the board of trustees of any State-administered retirement system or fund shall require the use of consistent and generally-accepted actuarial standards, as provided by the Governmental Accounting Standards Board or its successor, for the purpose of determining fund asset values, liabilities and annual employer contributions; the State and any local government entity participating in any State-administered retirement system or fund shall annually pay the full employer contribution as determined by the system or fund's actuaries; and neither the Legislature, by law, nor the board of trustees of any State-administered retirement system or fund, shall authorize any early retirement incentive program for public employees that has a negative impact on, or creates an unfunded liability for the system or fund, be approved?
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INTERPRETIVE STATEMENT |
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NO |
This constitutional amendment establishes standards to ensure public employee pension systems are financially sound. It would require all public pension systems to use actuarial standards established by the Governmental Accounting Standards Board, require public employers to make annual full actuarially-sound payments to State-administered retirement systems, and prohibit early retirement incentive programs for public employees that negatively impact, or create an unfunded liability for, a retirement system.
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STATEMENT
This concurrent resolution proposes a constitutional amendment that would establish standards to ensure public employee pension systems are financially sound. It would require all public pension systems to use actuarial standards established by the Governmental Accounting Standards Board, require public employers to make annual full actuarially-sound payments to State-administered retirement systems, and prohibit early retirement incentive programs for public employees that negatively impact, or create an unfunded liability for, a retirement system. The bill's provisions are based upon testimony and other information received by the Joint Legislative Committee on Public Employee Benefits Reform.
