Bill Text: NJ S1803 | 2016-2017 | Regular Session | Introduced
Bill Title: Authorizes county colleges to offer retirement incentive to employees age 65 or older with 25 years of service credit in ABP.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-03-07 - Introduced in the Senate, Referred to Senate Higher Education Committee [S1803 Detail]
Download: New_Jersey-2016-S1803-Introduced.html
Sponsored by:
Senator ANTHONY R. BUCCO
District 25 (Morris and Somerset)
SYNOPSIS
Authorizes county colleges to offer retirement incentive to employees age 65 or older with 25 years of service credit in ABP.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning retirement benefits for certain employees of certain county colleges.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. An employee of a county college under the Alternate Benefit Program (ABP), established pursuant to P.L.1969, c.242 (C.18A:66-167 et seq.), that elects to provide the benefits authorized under this act who:
is at least 65 years of age and has at least 25 years of service with public employers in this State participating in the ABP for which contributions were made by the employee under the program before the effective date of retirement;
files an application to retire within one month after the effective date of the resolution adopted by the board of trustees of the county college pursuant to subsection b. of this section; and
retires under the retirement system within three months after the effective date of the resolution,
shall receive an additional amount equal to $500 for each complete year of service as a participant in the ABP.
The payments shall be made to the employee's retirement annuity contract under the ABP up to the maximum contribution allowable under section 415 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.415. Any payment amount in excess of the section 415 contribution limit shall be contributed to a contract on behalf of the employee that meets the requirements of subsection (b) of section 403 of the federal Internal Revenue Code of 1986, 26 U.S.C. s.403, to the extent that the payment may be contributed on a before-tax basis under the maximum limits allowed under the Internal Revenue Code of 1986. Payment amounts in excess of the section 403(b) limit shall be paid directly to the employee.
The additional retirement benefit under this section is applicable only to the full-time employment with the county college that elects to provide the benefit authorized under this act, P.L. , c. (pending before the Legislature as this bill), and from which the employee retires to receive the benefit.
A county college shall be responsible for the full cost of health care benefits in retirement provided under section 2 of P.L.1992, c.126 (C.52:14-17.32f1) and section 39 of P.L.2007, c.103 (C.52:14-17.46.9) for each employee retiring under the provisions of this act until the employee attains age 70.
b. A county college board of trustees may elect to provide the benefits under this act by the adoption of a resolution, which is to be effective on the first day of a month, within one year of the effective date of this act and the filing of a certified copy of the resolution with the Director of the Division of Pensions and Benefits in the Department of the Treasury within three business days after its adoption. The board of trustees may elect to provide the benefits under this act one time only and the effective date of the resolution shall fall within the one-year period following the effective date of this act. The county college shall submit to the director any information necessary to provide the benefits or to determine the liability for them.
c. The cost of the payments under this act for the ABP participants shall be funded by the county college from appropriations to the employer for annual operating expenses or from funds otherwise available to the employer for operating expenses.
d. An employee who receives a benefit under this act shall forfeit all tenure rights.
e. When the needs of the county college require the service of an employee who elects to retire and receive a benefit under this act, the county college, with the approval of the board of trustees and with the consent of the employee, may delay the effective retirement date of the employee until the first day of any calendar month after the third month after the effective date of the resolution adopted by the board of trustees pursuant to this act, but not later than one year after that three-month period. A delay in the effective retirement date of an employee shall not extend the dates set forth in this act to qualify for benefits under this act.
f. For the purposes of this act, "employee" means a full-time employee of a county college who is eligible to participate in the employer's health care benefits plan.
g. Prior to the end of the one-year period following the effective date of this act, each county college covered by the provisions of this act shall meet and consult with the representatives of the bargaining unit or units representing the employees who would be eligible for benefits under this act.
h. The Director of the Division of Pensions and Benefits may promulgate rules and regulations that the director deems necessary for the effective implementation of this act.
2. This act shall take effect immediately.
STATEMENT
This bill provides additional retirement benefits to certain employees of a county college that elects to provide the benefits. Employees who are at least 65 years of age and have at least 25 years of service credit under the Alternate Benefit Program (ABP) as of the effective date of retirement will receive an additional amount equal to $500 for each complete year of service as a participant in the ABP.
Current law provides that county colleges retirees with 25 or more years of service are eligible for State-paid coverage in the School Employees' Health Benefits Program. Under the bill, the county college will be responsible for the full cost of health care benefits in retirement for each employee retiring under the provisions of the bill until the employee attains age 70.
A county college may elect to provide these benefits by the adoption of a resolution by its board of trustees and the filing of a certified copy with the Director of the Division of Pensions and Benefits. A board of trustees will have one year after the enactment of the bill to adopt a resolution. Once a resolution is adopted and effective, employees will have 30 days to file an application and 90 days to retire.
When the needs of a county college require the services of an employee who elects to retire and receive a benefit under this bill, with the approval of its board of trustees, it may delay the effective retirement date of the employee for up to one year. The delay authorized under the bill does not extend the dates for qualification for benefits. Employers covered by this bill must meet with the employee union representatives prior to adopting a resolution.
