Bill Text: NJ S1546 | 2012-2013 | Regular Session | Introduced
Bill Title: Allows judgment for restitution of stolen public funds to be levied against convicted employee's retirement allowance or pension contributions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-02-09 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S1546 Detail]
Download: New_Jersey-2012-S1546-Introduced.html
Sponsored by:
Senator CHRISTOPHER J. CONNORS
District 9 (Atlantic, Burlington and Ocean)
SYNOPSIS
Allows judgment for restitution of stolen public funds to be levied against convicted employee's retirement allowance or pension contributions.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the garnishment of the retirement allowance or pension contributions of certain convicted public employees and amending various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.18A:66-51 is amended to read as follows:
18A:66-51. The right of a person to a pension, an annuity, or a retirement allowance, to the return of contributions, any benefit or right accrued or accruing to a person under the provisions of this article, and the moneys in the various funds created under this article[,]:
a. shall be exempt from any State or municipal tax and from levy and sale, garnishment, attachment or any other process arising out of any State of Federal court, except that the State or other public employer shall be entitled to the enforcement of an order of garnishment against the withdrawal of any contributions by, or the payment of a retirement allowance to, a member or beneficiary in the amount of a money judgment obtained by the State or other public employer and rendered against that member if convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes, or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense. Such judgment may include the cost of prosecution as well as the amount of restitution ordered; and[,]
b. except as hereafter in this section and as in this article otherwise provided, shall be unassignable.
Nothing in this section shall prohibit any person insured under a group insurance policy, pursuant to an arrangement among the insured, the group policyholder and the insurer, from making to any person other than his employer, a gift assignment of the rights and benefits conferred on him by any provision of such policy or by law including specifically but not by way of limitation the right to exercise the conversion privilege and the right to name a beneficiary. Any such assignment, whether made before or after the effective date of this act, shall entitle the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy in accordance with the terms of the assignment.
(cf: P.L.1969, c.98, s.1)
2. Section 41 of P.L.1973, c.140 (C.43:6A-41) is amended to read as follows:
41. The right of a person to a pension, retirement allowance or any benefit or right accrued or accruing to a person under the provisions of this act and the moneys in the various funds created under this act[,]:
a. shall be exempt from any State or municipal tax and from levy and sale, garnishment, attachment or any other process arising out of any State or federal court, except that the State or other public employer shall be entitled to the enforcement of an order of garnishment against the withdrawal of any contributions by, or the payment of a retirement allowance to, a member or beneficiary in the amount of a money judgment obtained by the State or other public employer and rendered against that member if convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes, or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense. Such judgment may include the cost of prosecution as well as the amount of restitution ordered; and[,]
b. except as hereinafter in this section and as in this act otherwise provided, shall be unassignable.
Nothing in this section shall prohibit any person insured under a group insurance policy, pursuant to an arrangement among the insured, the group policyholder and the insurer, from making to any person other than his employer, a gift assignment of the rights and benefits conferred on him by any provision of such policy or by law including specifically but not by way of limitation the right to exercise the conversion privilege and the right to name a beneficiary. Any such assignment, whether made before or after the effective date of this act, shall entitle the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy in accordance with the terms of the assignment.
(cf: P.L.1981, c.470, s.21)
3. Section 53 of P.L.1954, c.84 (C.43:15A-53) is amended to read as follows:
53. The right of a person to a pension, an annuity, or a retirement allowance, to the return of contributions, any benefit or right accrued or accruing to a person under the provisions of this act and the moneys in the various funds created under this act[,]:
a. shall be exempt from any State or municipal tax and from levy and sale, garnishment, attachment or any other process arising out of any State or Federal court, except that the State or other public employer shall be entitled to the enforcement of an order of garnishment against the withdrawal of any contributions by, or the payment of a retirement allowance to, a member or beneficiary in the amount of a money judgment obtained by the State or other public employer and rendered against that member if convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes, or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense. Such judgment may include the cost of prosecution as well as the amount of restitution ordered; and[,]
b. except as in this section and in this act otherwise provided, shall be unassignable.
Nothing in this section shall prohibit any person insured under a group insurance policy, pursuant to an arrangement among the insured, the group policyholder and the insurer, from making to any person other than his employer, a gift assignment of the rights and benefits conferred on him by any provision of such policy or by law including specifically but not by way of limitation the right to exercise the conversion privilege and the right to name a beneficiary. Any such assignment, whether made before or after the effective date of this act, shall entitle the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy in accordance with the terms of the assignment.
(cf: P.L.1969, c.98, s.2)
4. Section 17 of P.L.1944, c.255 (C.43:16A-17) is amended to read as follows:
17. The right of a person to a pension, an annuity, or a retirement allowance, to the return of contributions, any benefit or right accrued or accruing to a person under the provisions of this act and the moneys in the various funds created under this act[,]:
a. shall be exempt from any State or municipal tax and from levy and sale, garnishment, attachment or any other process, except that the State or other public employer shall be entitled to the enforcement of an order of garnishment against the withdrawal of any contributions by, or the payment of a retirement allowance to, a member or beneficiary in the amount of a money judgment obtained by the State or other public employer and rendered against that member if convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes, or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense. Such judgment may include the cost of prosecution as well as the amount of restitution ordered; and
b. except as hereinafter in this section and as in this act otherwise provided, shall be unassignable.
Nothing in this section shall prohibit any person insured under a group insurance policy, pursuant to an arrangement among the insured, the group policyholder and the insurer, from making to any person other than his employer, a gift assignment of the rights and benefits conferred on him by any provision of such policy or by law including specifically but not by way of limitation the right to exercise the conversion privilege and the right to name a beneficiary. Any such assignment, whether made before or after the effective date of this act, shall entitle the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy in accordance with the terms of the assignment.
(cf: P.L.1969, c.98, s.3)
5. Section 45 of P.L.1965, c.89 (C.53:5A-45) is amended to read as follows:
45. The right of a person to a pension, an annuity, or a retirement allowance, to the return of contributions, any benefit or right accrued or accruing to a person under the provisions of this act and the moneys in the various funds created under this act[,]:
a. shall be exempt from any State or municipal tax and from levy and sale, garnishment, attachment or any other process arising out of any State or Federal court, except that the State or other public employer shall be entitled to the enforcement of an order of garnishment against the withdrawal of any contributions by, or the payment of a retirement allowance to, a member or beneficiary in the amount of a money judgment obtained by the State or other public employer and rendered against that member if convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes, or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense. Such judgment may include the cost of prosecution as well as the amount of restitution ordered; and[,]
b. except as hereinafter in this section and as in this act otherwise provided, shall be unassignable.
Nothing in this section shall prohibit any person insured under a group insurance policy, pursuant to an arrangement among the insured, the group policyholder and the insurer, from making to any person other than his employer, a gift assignment of the rights and benefits conferred on him by any provision of such policy or by law including specifically but not by way of limitation the right to exercise the conversion privilege and the right to name a beneficiary. Any such assignment, whether made before or after the effective date of this act, shall entitle the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy in accordance with the terms of the assignment.
(cf: P.L.1969, c.98, s.4)
6. This act shall take effect immediately.
STATEMENT
This bill allows a public employer to levy a judgment for restitution of illegally obtained funds against a convicted public employee's retirement allowance from any of the principal State-administered retirement systems or from the employee's pension contributions to any of these systems.
Under current law, the right of a public employee to a pension, an annuity, or a retirement allowance or to the return of contributions from the Teachers' Pension and Annuity Fund, the Judicial Retirement System, the Public Employees' Retirement System, the Police and Firemen's Retirement System or the State Police Retirement System is exempt from levy and sale, garnishment, attachment or any other process arising out of any State or federal court.
Under this bill, the State or other public employer will be entitled to an order of garnishment against the withdrawal of any contributions by, or the payment of a retirement allowance to, a retirement system member or beneficiary in the amount of a money judgment obtained by the employer and rendered against that member if convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes (concerning bribery and corrupt influence), or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense. The judgment may include the cost of prosecution as well as the amount of restitution ordered.
