Bill Text: NJ S1320 | 2010-2011 | Regular Session | Introduced
Bill Title: Provides that receipt of public pension or retirement allowance will be suspended during reemployment with public employer; allows enrollment in DCRP based on such reemployment.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2010-02-08 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S1320 Detail]
Download: New_Jersey-2010-S1320-Introduced.html
Sponsored by:
Senator THOMAS GOODWIN
District 14 (Mercer and Middlesex)
Senator BILL BARONI
District 14 (Mercer and Middlesex)
SYNOPSIS
Provides that receipt of public pension or retirement allowance will be suspended during reemployment with public employer; allows enrollment in DCRP based on such reemployment.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning receipt of a retirement allowance from a public pension system while employed by a public employer in the State and amending P.L.1968, c.23 and P.L.2007, c.92.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1968, c.23 (C.43:3C-1) is amended to read as follows:
1. Notwithstanding any other law to the contrary, if a former member of any pension fund or retirement system, contributory or noncontributory, established under any law of this State, who has been granted a pension or retirement allowance for any cause other than vesting or deferred retirement, becomes employed again in a position which (1) requires him or her to reenroll in that same pension fund or retirement system or (2) makes him or her eligible to be a member of another pension fund or retirement system established under any law of this State, such person shall not be enrolled in any pension fund or retirement system [if he is eligible to receive such] and the person's pension or retirement allowance shall be suspended until the person is no longer reemployed by a public employer. The reemployed person shall retain the right to the death benefit based on the former membership in the pension fund or retirement system. A public employer may request from the Attorney General a one-year waiver of the suspension of the payment of a pension or retirement allowance to a reemployed former member on the basis of extraordinary circumstances; such waiver may be renewed by the Attorney General for one additional year upon application of the employer. Any reemployed former member whose receipt of a pension or retirement allowance has been suspended pursuant to this section may elect to participate in the Defined Contribution Retirement Program, established pursuant to P.L.2007, c.92 (C.43:15C-1 et al.), as provided in subsection e. of section 2 of P.L.2007, c.92 (C.43:15C-2), based upon the reemployment.
(cf: P.L.1991, c.276, s.1)
2. Section 2 of P.L.2007, c.92 (C.43:15C-2) is amended to read as follows:
2. a. The following persons shall be eligible and shall participate in the Defined Contribution Retirement Program:
(1) A person who commences service on or after the effective date of this section of P.L.2007, c.92 (C.43:15C-1 et al.) in an elective public office of this State or of a political subdivision thereof, except that it shall not include a person who holds elective public office on the effective date of this section and is enrolled in the Public Employees' Retirement System while that person continues to hold that elective public office without a break in service. Service in the Legislature shall be considered a single elective public office.
(2) A person who commences service on or after the effective date of this section in an employment, office or position of the State or of a political subdivision thereof, or an agency, board, commission, authority or instrumentality of the State or of a subdivision, pursuant to an appointment by the Governor that requires the advice and consent of the Senate, or pursuant to an appointment by the Governor to serve at the pleasure of the Governor only during his or her term of office. This paragraph shall not be deemed to include a person otherwise eligible for membership in the State Police Retirement System or the Judicial Retirement System.
(3) A person who commences service on or after the effective date of this section in an employment, office or position in a political subdivision of the State, or an agency, board, commission, authority or instrumentality of a subdivision, pursuant to an appointment by an elected public official or elected governing body, that requires the specific consent or approval of the elected governing body of the political subdivision that is substantially similar in nature to the advice and consent of the Senate for appointments by the Governor of the State as that similarity is determined by the elected governing body and set forth in an adopted ordinance or resolution, pursuant to guidelines or policy that shall be established by the Local Finance Board in the Department of Community Affairs or the Department of Education, as appropriate to the elected governing body. This paragraph shall not be deemed to include a person otherwise eligible for membership in the Teachers' Pension and Annuity Fund or the Police and Firemen's Retirement System, or a person who is employed or appointed in the regular or normal course of employment or appointment procedures and consented to or approved in a general or routine manner appropriate for and followed by the political subdivision, or the agency, board, commission, authority or instrumentality of a subdivision, or a person who holds a professional license or certificate to perform and is performing as a certified health officer, tax assessor, tax collector, municipal planner, chief financial officer, registered municipal clerk, construction code official, licensed uniform subcode inspector, qualified purchasing agent, or certified public works manager.
(4) A person who is granted a pension or retirement allowance under any pension fund or retirement system established under the laws of this State and elects to participate pursuant to section 1 of P.L.1977, c.171 (C.43:3C-3) upon being elected to public office.
(5) A member of the Teachers' Pension and Annuity Fund or the Public Employees' Retirement System for whom compensation is defined as the amount of base or contractual salary equivalent to the annual maximum wage contribution base for Social Security, pursuant to the Federal Insurance Contributions Act, for contribution and benefit purposes in either of those retirement systems, for whom participation in this retirement program shall be with regard to any excess over the maximum compensation only.
(6) A person in employment, office or position for which the annual salary or remuneration is less than that which is required to become a member of the Teachers' Pension and Annuity Fund or the Public Employees' Retirement System, or to make contributions to those systems as a member on the basis of any such employment, office or position, after the effective date of P.L.2008, c.89.
b. No person shall be eligible to participate in the retirement program with respect to any public employment, office, or position if:
(1) the base salary for that employment, office, or position is less than $1,500 per year;
(2) the person is, on the basis of service in that employment, office, or position, eligible for membership or enrolled as a member of another State or locally-administered pension fund or retirement system established under the laws of this State including the Alternate Benefit Program, except as otherwise specifically provided in subsection a. of this section;
(3) the person is receiving a benefit as a retiree from any other State or locally-administered pension fund or retirement system established under the laws of this State, except as provided in section 1 of P.L.1977, c.171 (C.43:3C-3) and in subsection e. of this section; or
(4) the person is an officer or employee of a political subdivision of this State or of a board of education, or of any agency, authority or instrumentality thereof, who is ineligible for membership in the Public Employees' Retirement System pursuant to section 20 of P.L.2007, c.92 (C.43:15A-7.2).
c. A person eligible and required to participate in the retirement program whose base salary is less than $5,000 may at the commencement of service in an employment, office or position irrevocably elect to waive participation with regard to that employment, office, or position by filing, at the time and on a form required by the division, a written waiver with the Division of Pensions and Benefits that waives all rights and benefits that would otherwise be provided by the retirement program.
A person eligible and required to participate in the retirement program pursuant to paragraph (5) of subsection a. of this section may elect to waive participation with regard to that employment, office, or position by filing, when first eligible, on a form required by the division, a written waiver with the Division of Pensions and Benefits that waives all rights and benefits that would otherwise be provided by the retirement program. Such a person may thereafter elect to participate in the retirement program by filing, on a form required by the division, a written election to participate in the retirement program and participation in the retirement program pursuant to such election shall commence on the January 1 next following the filing of the election to participate.
d. Service credited to a participant in the Defined Contribution Retirement Program shall not be recognized as service credit to determine eligibility for employer-paid health care benefits in retirement pursuant to P.L.1961, c.49 (C.52:14-17.25 et seq.), N.J.S.40A:10-16 et seq., P.L.1979, c.391 (C.18A:16-12 et al.) or any other law, rule or regulation.
e. A person who has been granted a pension or retirement allowance for any cause other than vesting or deferred retirement by any pension fund or retirement system established under the laws of this State and who, after the effective date of P.L. , c. (pending before the Legislature as this bill), becomes employed again in a position that makes the person eligible for reenrollment in the same pension fund or retirement system, or for enrollment in another pension fund or retirement system established under any law of this State, and whose pension or retirement allowance is suspended until the person is no longer reemployed, pursuant to section 1 of P.L.1968, c.23 (C.43:3C-1), may elect to participate in the retirement program with respect to that reemployment.
(cf: P.L.2008, c.89, s.11)
3. This act shall take effect immediately.
STATEMENT
This bill provides that if a former member of any public pension fund or retirement system established under any law of this State, who has been granted a pension or retirement allowance for any cause other than vesting or deferred retirement, becomes employed again in a position which (1) requires him or her to reenroll in that same pension fund or retirement system or (2) makes him or her eligible to be a member of another pension fund or retirement system established under any law of this State, such person will not be enrolled in any pension fund or retirement system and the person's pension or retirement allowance will be suspended until the person is no longer reemployed by a public employer. The reemployed person will retain the right to the death benefit based on the former membership in the pension fund or retirement system. A public employer may request from the Attorney General a one-year waiver of the suspension of the payment of a pension or retirement allowance to a reemployed former member on the basis of extraordinary circumstances. That waiver may be renewed by the Attorney General for one additional year upon application of the employer. The bill allows any reemployed former member whose receipt of a pension or retirement allowance has been suspended to participate in the Defined Contribution Retirement Program (DCRP) based upon the reemployment.
Current law provides that if a retiree becomes employed again in a position which makes the retiree eligible to be a member of the same pension fund or retirement system, the retiree will be reenrolled in the fund or system and cease to receive a retirement benefit. Exceptions to that general rule exist for certain reemployment arrangements for PERS and TPAF retirees and certain elected officials. If a retiree becomes employed again in a position which makes the retiree eligible to be a member of a public pension fund or retirement system different from the one providing a retirement allowance, the retiree does not enroll in such other fund or system and continues to receive a retirement benefit.
Under the bill, retirees of all public retirement systems who become reemployed in public positions, outside the current exceptions, will give up receipt of their current retirement allowances, payment of which resume upon cessation of the reemployment. The reemployed retirees will be eligible to participate in the DCRP with regard to their public post-retirement employment.
