Bill Text: NJ S76 | 2014-2015 | Regular Session | Introduced
Bill Title: Changes certain eligibility criteria for TPAF, JRS, PERS, PFRS and SPRS disability benefits; requires Attorney General to establish fraud unit; creates temporary committee to recommend accidental disability standard for systems.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-10-31 - Reviewed by the Pension and Health Benefits Commission Recommend to not enact [S76 Detail]
Download: New_Jersey-2014-S76-Introduced.html
Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
Co-Sponsored by:
Senator Beck
SYNOPSIS
Changes certain eligibility criteria for TPAF, JRS, PERS, PFRS and SPRS disability benefits; requires Attorney General to establish fraud unit; creates temporary committee to recommend accidental disability standard for systems.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning disability retirement eligibility and benefits under the State-administered defined benefit pension systems, repealing sections 10 and 11 of P.L.2010, c.3, and amending and supplementing various parts of the statutory law.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. There is hereby created an Accidental Disability Pension Review Committee, in, but not of, the Department of the Treasury, composed of 26 members as follows:
the State Treasurer, or a designee;
two members who shall be appointed by the Governor as representatives of public employers whose employees are enrolled in the Teachers' Pension and Annuity Fund;
one member who shall be appointed by the Governor as representative of the judges who are enrolled in the Judicial Retirement System;
five members who shall be appointed by the Governor as representatives of public employers whose employees are enrolled in the Public Employees' Retirement System;
three members who shall be appointed by the Governor as representatives of public employers whose employees are enrolled in the Police and Firemen's Retirement System;
one member who shall be appointed by the Governor as representative of the public employer whose employees are enrolled in the State Police Retirement System;
two members who shall be appointed by the New Jersey Education Association;
one member who shall be appointed by the Administrative Office of the Courts as representative of the judges who are enrolled in the Judicial Retirement System;
three members who shall be appointed by the Public Employee Committee of the AFL-CIO;
two members who shall be appointed by the head of the union, that is not affiliated with the AFL-CIO, that represents the greatest number of police officers in this State;
one member who shall be appointed by the New Jersey State Fraternal Order of Police;
two members who shall be appointed by the head of the union, that is not affiliated with the AFL-CIO, that represents the greatest number of firefighters in this State;
one member who shall be appointed by the head of a union that is affiliated with the AFL-CIO and represents firefighters in this State; and
one member who shall be appointed by the head of the State Troopers Fraternal Association.
b. The members of the committee shall select the chairperson from among the members. The committee's initial meeting shall be held within five days following the appointment of all of its members. The committee shall hold at least three hearings at which the public shall be permitted to give testimony.
c. The committee shall study the current requirement that a member of the Teachers' Pension and Annuity Fund, the Judicial Retirement System, the Public Employees' Retirement System, the Police and Firemen's Retirement System, and the State Police Retirement System shall be permanently and totally disabled as a direct result of a traumatic event in order to be deemed eligible for the receipt of an accidental disability benefit and shall develop a recommendation for specific criteria detailing what must be demonstrated by a member in order to meet the traumatic event eligibility standard of that requirement. The committee shall make only one recommendation that shall be in the form of proposed legislation.
d. (1) The committee shall render its final report within 180 days following the date of its initial meeting.
(2) The report containing the recommendation shall be transmitted, within 15 days after its adoption, to the President of the Senate and the Speaker of the General Assembly, to the members of the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Governor, and to the boards of trustees of the Teachers' Pension and Annuity Fund, the Public Employees' Retirement System, the Police and Firemen's Retirement System, and the State Police Retirement System, and to the State House Commission.
Within 90 days after receipt of the report, the Legislature shall vote on legislation based on the recommendation of the committee. If both Houses of the Legislature do not pass legislation within 90 days, or if both Houses do pass legislation but the Governor does not sign the legislation within 30 days after passage by both Houses, the boards of trustees or the State House Commission shall take action as provided pursuant to N.J.S.18A:66-39, section 12 of P.L.1973, c.140 (C.43:6A-12), section 43 of P.L.1954, c.84 (C.43:15A-43), section 7 of P.L.1944, c.255 (C.43:16A-7), or section 10 of P.L.1965, c.89 (C.53:5A-10), respectively.
e. The Attorney General shall be the legal advisor to the committee.
f. The members of the committee shall serve without compensation but shall be reimbursed for any necessary expenditures. A member of the committee who is a public employee shall not suffer loss of salary or wages during service on the committee, and shall be granted leave with pay to attend the meetings of the committee.
g. (1) If any matter before the committee receives at least 14 votes in the affirmative, the matter shall be deemed approved and adopted by the committee.
(2) If any matter before the committee receives 13 votes in the affirmative and 13 votes in the negative or the committee otherwise reaches an impasse on a decision, the following procedure shall be employed.
Whenever the committee fails to render a decision on a matter before the committee because it has not received a vote of the majority of the committee members after 10 days have passed following the initial consideration of the matter, the committee shall utilize a super conciliator, randomly selected from a list developed by the New Jersey Public Employment Relations Commission. The super conciliator shall assist the committee based upon procedures and subject to qualifications established by the commission pursuant to regulation.
The super conciliator shall promptly schedule investigatory proceedings. The purpose of the proceedings shall be to:
Investigate and acquire all relevant information regarding the committee's failure to render a decision;
Discuss with the members of the committee their differences, and utilize means and mechanisms, including but not limited to requiring 24-hour per day negotiations, until a voluntary settlement is reached, and provide recommendations to resolve the members' differences; and
Institute any other non-binding procedures deemed appropriate by the super conciliator.
If the actions taken by the super conciliator fail to resolve the dispute, the super conciliator shall issue a final report, which shall be provided to the committee promptly and made available to the public within 10 days thereafter.
The super conciliator, while functioning in a mediatory capacity, shall not be required to disclose any files, records, reports, documents, or other papers classified as confidential which are received or prepared by him or to testify with regard to mediation conducted by him under this section. Nothing contained herein shall exempt an individual from disclosing information relating to the commission of a crime.
2. N.J.S.18A:66-39 is amended to read as follows:
18A:66-39. a. Before June 9, 1971, a member, who shall have been a teacher and a member of the retirement system for each of the 10 years next preceding his retirement, shall, upon the application of his employer or upon his own application or the application of one acting in his behalf, be retired for ordinary disability by the board of trustees, on a regular disability allowance if he is under 60 years of age and on a service allowance if he has reached or passed that age. The physician or physicians designated by the board shall have first made a medical examination of him at his residence or at any other place mutually agreed upon and shall have certified to the board that the member is physically or mentally incapacitated for the performance of duty and should be retired.
b. On and after June 9, 1971, a member, under 60 years of age, who has 10 or more years of credit for New Jersey service, shall, upon the application of his employer or upon his own application or the application of one acting in his behalf, be retired for ordinary disability by the board of trustees. The physician or physicians designated by the board shall have first made a medical examination of him at his residence or at any other place mutually agreed upon and shall have certified to the board that the member is physically or mentally incapacitated for the performance of duty and of any other available duty which the employer is willing to assign to him for the same amount of compensation and should be retired. [No person who becomes a member of the retirement system on or after the effective date of P.L.2010, c.3 shall be eligible for retirement pursuant to this subsection.]
c. A member, under 65 years of age, shall, upon the application of his employer or upon his own application or the application of one acting in his behalf, be retired by the board of trustees, if said member is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties, on an accidental disability allowance. A traumatic event occurring during voluntary performance of regular or assigned duties at a place of employment before or after required hours of employment which is not in violation of any valid work rule of the employer or otherwise prohibited by the employer shall be deemed as occurring during the performance of regular or assigned duties. No person who becomes a member of the retirement system on or after the effective date of P.L.2010, c.3 shall be eligible for retirement pursuant to this subsection.
The application to accomplish such retirement must be filed within [five] two years of the original traumatic event, but the board of trustees may consider an application filed after the [five-year] two-year period if it can be factually demonstrated to the satisfaction of the board of trustees that the disability is due to the accident and the filing was not accomplished within the [five-year] two-year period due to a delayed manifestation of the disability or to circumstances beyond the control of the member.
Permanent and total disability resulting from a cardiovascular, pulmonary or musculo-skeletal condition which was not a direct result of a traumatic event occurring in the performance of duty shall be deemed an ordinary disability.
Before consideration of an application for accidental disability allowance by the board of trustees, the physician or physicians designated by the board shall have first made a medical examination of the member at his residence or at any other place mutually agreed upon and shall have certified to the board that he is physically or mentally incapacitated for the performance of duty and of any other available duty which the employer is willing to assign to him for the same amount of compensation, and should be retired, and the employer shall have certified to the board that the member is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular and assigned duties, the time and place where the duty causing the disability was performed, that the disability was not the result of his willful negligence and that the member should be retired. At the time of application for accidental disability, the member shall file an application for workers' compensation benefits under R.S.34:15-1 et seq. or for federal Social Security disability benefits. The results of such applications shall be reported to the Division of Pensions and Benefits.
d. Within 30 days after the date the board is authorized to take action as specified in section 1 of P.L. , c. (pending before the Legislature as this bill), the board of trustees shall meet to discuss the recommendation in the report of the Accidental Disability Pension Review Committee prepared and submitted pursuant to that section. A vote shall be taken at that meeting to adopt or reject the recommendation made in the report in its entirety without modification. If a majority of the board's membership votes in the affirmative to adopt the recommendation, the criteria shall be deemed adopted and shall be implemented by the board for all applicants who submit applications 30 days after the date of adoption by the board. If a majority of the board's membership votes to reject the recommendation, the criteria for all applicants shall not be changed. If the recommendation is rejected by the board, the board shall meet again within the following 12-month period to discuss the recommendation and shall take another vote to adopt or reject the recommendation. The board shall not be permitted to rescind the adoption of the recommendation and the committee established by subsection b. of N.J.S.18A:66-56 shall not be permitted to change the adopted criteria.
(cf: P.L.2010, c.3, s.7)
3. N.J.S.18A:66-40 is amended to read as follows:
18A:66-40. a. Once each year the retirement system may, and upon his application shall, require any disability beneficiary who is under the age of 60 years to undergo medical examination by a physician or physicians designated by the system [for a period of 5 years] following his retirement in order to determine whether or not the disability which existed at the time he was retired has vanished or has materially diminished. If the disability beneficiary is under normal retirement age and engaged in an occupation, then the amount of his pension shall be reduced to an amount which, when added to the amount then earned by him, shall not exceed the amount of the salary now attributable to his former position. If his earnings have changed since the date of his last adjustment, then the amount of his pension may be further altered; but the new pension shall not exceed the amount of pension originally granted. Each year, the disability beneficiary shall submit to the Division of Pensions and Benefits copies of the beneficiary's federal Internal Revenue tax forms, W-2 forms, and any other proof of employment required by regulation, unless such submission is waived by the board of trustees.
If a disability beneficiary, while under the age of 60 years, refuses to submit to at least one medical examination in any year by a physician or physicians designated by the system, his pension shall be discontinued until withdrawal of his refusal. If the report of the medical board shall show that such beneficiary is able to perform either his former duty or other comparable duty which his former employer is willing to assign to him, the beneficiary shall report for duty; such a beneficiary shall not suffer any loss of benefits while he awaits his restoration to active service. If the beneficiary fails to return to duty within 10 days after being ordered so to do, or within such further time as may be allowed by the board of trustees for valid reason, as the case may be, the pension shall be discontinued during such default.
b. If a disability beneficiary becomes employed again in a position which makes him eligible to be a member of the retirement system, his retirement allowance and the right to any death benefit as a result of his former membership, shall be canceled until he again retires.
Such person shall be reenrolled in the retirement system and shall contribute thereto at a rate based on his age at the time of his prior enrollment. Such person shall be treated as an active member for determining disability or death benefits while in service and no benefits pursuant to an optional selection with respect to his former membership shall be paid if his death shall occur during the period of such reenrollment.
Upon subsequent retirement of such member, he shall receive a retirement allowance based on all his service as a member, computed in accordance with applicable provisions of this article, but the total retirement allowance upon subsequent retirement shall not be a greater proportion of his final compensation than the proportion to which he would have been entitled had he remained in service during the period of his prior retirement. Any death benefit to which such member shall be eligible shall be based on his latest retirement.
(cf: P.L.1971, c.121, s.21)
4. Section 12 of P.L.1973, c.140 (C.43:6A-12) is amended to read as follows:
12. a. Whenever the Supreme Court shall certify to the Governor, any member who shall have served as a judge of the several courts, may be retired for disability if the member has become physically or otherwise incapacitated for full and efficient service to the State in his judicial capacity. The Governor shall thereupon refer the disability claim to three physicians of skill and repute in their profession and residents of this State who shall examine the member and report to the Governor as to his physical or other disability and whether in all reasonable probability, if they find the disability existent, it will continue permanently and does and will continue to prevent the member from giving full and efficient service in the performance of his judicial duties. If the report confirms the existence of the disability and the member has served as a judge, and as a judge and in office, position, or employment of this State or of a county, municipality, board of education or public agency of this State, for 10 or more years, and if the Governor approves the report, the member shall be retired not less than 1 month next following the date of filing of an application with the retirement system, and he shall receive a retirement allowance which shall consist of an annuity which is the actuarial equivalent of his accumulated deductions together with regular interest, and a pension which, when added to the member's annuity, will provide a retirement allowance for ordinary disability during the remainder of his life in an amount equal to [three-fourths of his final salary] 1½% of final salary multiplied by his number of years of aggregate service as a judge, or in office, position, or employment of this State or of a county, municipality, board of education or public agency of this State; and provided further, that in no event shall the allowance be less than 40% of final salary. If the report confirms that the member is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties, the member shall be retired not less than 1 month next following the date of filing of an application with the retirement system, and he shall receive a retirement allowance which shall consist of an annuity which is the actuarial equivalent of his accumulated deductions together with regular interest, and a pension which, when added to the member's annuity, will provide a retirement allowance for accidental disability during the remainder of his life in an amount equal to three-fourths of final salary. An application for an accidental disability allowance shall be filed within two years of the original traumatic event, but the Governor may consider an application filed after the two-year period if it can be factually demonstrated that the disability is due to the accident and the filing was not accomplished within the two-year period due to a delayed manifestation of the disability or to circumstances beyond the control of the member.
b. The State House Commission may require any disability beneficiary under the age of 70 years to undergo medical examination by a physician or physicians designated by the Division of Pension and Benefits following the retirement in order to determine whether or not the disability which existed at the time has vanished or has materially diminished. At the time of retirement for accidental disability, the member shall file an application for workers' compensation benefits under R.S.34:15-1 et seq. or for federal Social Security disability benefits. The results of such applications shall be reported to the Division of Pensions and Benefits.
c. If the disability beneficiary is under age 70 and engaged in an occupation, then the amount of his pension shall be reduced to an amount which when added to the amount then earned by him, shall not exceed the amount of the salary now attributable to his former position. If his earnings have changed since the date of his last adjustment, then the amount of his pension may be further altered, but the new pension shall not exceed the amount of pension originally granted. Each year, the disability beneficiary shall submit to the Division of Pensions and Benefits copies of the beneficiary's federal Internal Revenue tax forms, W-2 forms, and any other proof of employment required by regulation, unless such submission is waived by the State House Commission.
d. Within 30 days after the date the State House Commission is authorized to take action as specified in section 1 of P.L. , c. (pending before the Legislature as this bill), the commission shall meet to discuss the recommendation in the report of the Accidental Disability Pension Review Committee prepared and submitted pursuant to that section. A vote shall be taken at that meeting to adopt or reject the recommendation made in the report in its entirety without modification. If a majority of the commission's membership votes in the affirmative to adopt the recommendation, the criteria shall be deemed adopted and shall be implemented by the commission for all applicants who submit applications 30 days after the date of adoption by the commission. If a majority of the commission's membership votes to reject the recommendation, the criteria for all applicants shall not be changed. If the recommendation is rejected by the commission, the commission shall meet again within the following 12-month period to discuss the recommendation and shall take another vote to adopt or reject the recommendation. The commission shall not be permitted to rescind the adoption of the recommendation or to change the adopted criteria pursuant to subsection j. of section 29 of P.L.1973, c.140 (C.43:6A-29).
(cf: P.L.1981, c.470, s.6)
5. Section 42 of P.L.1954, c.84 (C.43:15A-42) is amended to read as follows:
42. A member, under 60 years of age, who has 10 or more years of credit for New Jersey service, shall, upon the application of the head of the department in which he shall have been employed or upon his own application or the application of one acting in his behalf, be retired for ordinary disability by the board of trustees. The physician or physicians designated by the board shall have first made a medical examination of him at his residence or at any other place mutually agreed upon and shall have certified to the board that the member is physically or mentally incapacitated for the performance of duty and of any other available duty which the employer is willing to assign him for the same amount of compensation and should be retired.
The service requirement provisions of this amendatory and supplementary act shall not become effective for 5 years following the effective date of the act.
[No person who becomes a member of the retirement system on or after the effective date of P.L.2010, c.3 shall be eligible for retirement pursuant to this section.]
(cf: P.L.2010, c.3, s.8)
6. Section 43 of P.L.1954, c.84 (C.43:15A-43) is amended to read as follows:
43. a. A member who has not attained age 65 shall, upon the application of the head of the department in which he is employed or upon his own application or the application of one acting in his behalf, be retired by the board of trustees, if said employee is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties, on an accidental disability allowance. A traumatic event occurring during voluntary performance of regular or assigned duties at a place of employment before or after required hours of employment which is not in violation of any valid work rule of the employer or otherwise prohibited by the employer shall be deemed as occurring during the performance of regular or assigned duties.
The application to accomplish such retirement must be filed within [five] two years of the original traumatic event, but the board of trustees may consider an application filed after the [five-year] two-year period if it can be factually demonstrated to the satisfaction of the board of trustees that the disability is due to the accident and the filing was not accomplished within the [five-year] two-year period due to a delayed manifestation of the disability or to circumstances beyond the control of the member.
Permanent and total disability resulting from a cardiovascular, pulmonary or musculo-skeletal condition which was not a direct result of a traumatic event occurring in the performance of duty shall be deemed an ordinary disability.
Before consideration of the application by the board of trustees, the physician or physicians designated by the board shall have first made a medical examination of the member at his residence or at any other place mutually agreed upon and shall have certified to the board that he is physically or mentally incapacitated for the performance of duty and of any other available duty which the employer is willing to assign to him for the same amount of compensation, and should be retired, and the appointing authority shall have certified to the board that the member is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties, the time and place where the duty causing the disability was performed, that the disability was not the result of his willful negligence and that the member should be retired.
[No person who becomes a member of the retirement system on or after the effective date of P.L.2010, c.3 shall be eligible for retirement pursuant to this section.]
At the time of application for accidental disability, the member shall file an application for workers' compensation benefits under R.S.34:15-1 et seq. or for federal Social Security disability benefits. The results of such applications shall be reported to the Division of Pensions and Benefits.
b. Within 30 days after the date the board is authorized to take action as specified in section 1 of P.L. , c. (pending before the Legislature as this bill), the board of trustees shall meet to discuss the recommendation in the report of the Accidental Disability Pension Review Committee prepared and submitted pursuant to that section. A vote shall be taken at that meeting to adopt or reject the recommendation made in the report in its entirety without modification. If a majority of the board's membership votes in the affirmative to adopt the recommendation, the criteria shall be deemed adopted and shall be implemented by the board for all applicants who submit applications 30 days after the date of adoption by the board. If a majority of the board's membership votes to reject the recommendation, the criteria for all applicants shall not be changed. If the recommendation is rejected by the board, the board shall meet again within the following 12-month period to discuss the recommendation and shall take another vote to adopt or reject the recommendation. The board shall not be permitted to rescind the adoption of the recommendation and the committee established by subsection b. of section 17 of P.L.1954, c.84 (C.43:15A-17) shall not be permitted to change the adopted criteria.
(cf: P.L.2010, c.3, s.9)
7. Section 44 of P.L.1954, c.84 (C.43:15A-44) is amended to read as follows:
44. a. Once each year the retirement system may, and upon his application shall, require any disability beneficiary who is under the age of 60 years to undergo medical examination by a physician or physicians designated by the system [for a period of 5 years] following his retirement in order to determine whether or not the disability which existed at the time he was retired has vanished or has materially diminished. If the disability beneficiary is under normal retirement age and engaged in an occupation, then the amount of his pension shall be reduced to an amount which, when added to the amount then earned by him, shall not exceed the amount of the salary now attributable to his former position. If his earnings have changed since the date of his last adjustment, then the amount of his pension may be further altered; but the new pension shall not exceed the amount of pension originally granted. Each year, the disability beneficiary shall submit to the Division of Pensions and Benefits copies of the beneficiary's federal Internal Revenue tax forms, W-2 forms, and any other proof of employment required by regulation, unless such submission is waived by the board of trustees.
If a disability beneficiary, while under age of 60 years, refuses to submit to at least one medical examination in any year by a physician or physicians designated by the system, his pension shall be discontinued until withdrawal of his refusal. If the report of the medical board shall show that such beneficiary is able to perform either his former duty or other comparable duty which his former employer is willing to assign to him, the beneficiary shall report for duty; such a beneficiary shall not suffer any loss of benefits while he awaits his restoration to active service. If the beneficiary fails to return to duty within 10 days after being ordered so to do, or within such further time as may be allowed by the board of trustees for valid reason, as the case may be, the pension shall be discontinued during such default.
b. If a disability beneficiary becomes employed again in a position which makes him eligible to be a member of the retirement system, his retirement allowance and the right to any death benefit as a result of his former membership, shall be canceled until he again retires.
Such person shall be reenrolled in the retirement system and shall contribute thereto at a rate based on his age at the time of his prior enrollment. Such persons shall be treated as an active member for determining disability or death benefits while in service and no benefits pursuant to an optional selection with respect to his former membership shall be paid if his death shall occur during the period of such reenrollment.
Upon subsequent retirement of such member, he shall receive a retirement allowance based on all his service as a member computed in accordance with applicable provisions of this act, but the total retirement allowance upon subsequent retirement shall not be a greater proportion of his final compensation than the proportion to which he would have been entitled had he remained in service during the period of his prior retirement. Any death benefit to which such member shall be eligible shall be based on his latest retirement.
(cf: P.L.1971, c.213, s.18)
8. Section 6 of P.L.1944, c.255 (C.43:16A-6) is amended to read as follows:
6. (1) Upon the written application by a member in service, by one acting in his behalf or by his employer, any member, under 55 years of age, who has had [four] ten or more years of creditable service may be retired on an ordinary disability retirement allowance; provided, that the medical board, after a medical examination of such member, shall certify that such member is mentally or physically incapacitated for the performance of his usual duty and of any other available duty in the department which his employer is willing to assign to him for the same amount of compensation and that such incapacity is likely to be permanent and to such an extent that he should be retired.
(2) Upon retirement for ordinary disability, a member shall receive an ordinary disability retirement allowance which shall consist of:
(a) An annuity which shall be the actuarial equivalent of his aggregate contributions and
(b) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of 1 1/2 % of final compensation multiplied by his number of years of creditable service but in no event shall the total allowance be less than 40% of the member's final compensation.
(3) Notwithstanding the provisions of subsection (2) of this section, a member who has more than 20 but less than 25 years of creditable service and who is required to retire upon application by the employer on or after the effective date of P.L.1999, c.428, shall receive an ordinary disability retirement allowance which shall consist of:
(a) An annuity which shall be the actuarial equivalent of the member's aggregate contributions; and
(b) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of 50% of final compensation plus 3% of final compensation multiplied by the number of years of creditable service over 20 but not over 25.
(4) Upon the receipt of proper proofs of the death of a member who has retired on an ordinary disability retirement allowance, there shall be paid to such member's beneficiary, an amount equal to 3 1/2 times the compensation upon which contributions by the member to the annuity savings fund were based in the last year of creditable service; provided, however, that if such death shall occur after the member shall have attained 55 years of age the amount payable shall equal 1/2 of such compensation instead of 3 1/2 times such compensation.
(cf: P.L.1999, c.428, s.3)
9. Section 7 of P.L.1944, c.255 (C.43:16A-7) is amended to read as follows:
7. (1) Upon the written application by a member in service, by one acting in his behalf or by his employer any member may be retired on an accidental disability retirement allowance; provided, that the medical board, after a medical examination of such member, shall certify that the member is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties and that such disability was not the result of the member's willful negligence and that such member is mentally or physically incapacitated for the performance of his usual duty and of any other available duty in the department which his employer is willing to assign to him for the same amount of compensation. The application to accomplish such retirement must be filed within [five] two years of the original traumatic event, but the board of trustees may consider an application filed after the [five-year] two-year period if it can be factually demonstrated to the satisfaction of the board of trustees that the disability is due to the accident and the filing was not accomplished within the [five-year] two-year period due to a delayed manifestation of the disability or to other circumstances beyond the control of the member.
(2) Upon retirement for accidental disability, a member shall receive an accidental disability retirement allowance which shall consist of:
(a) An annuity which shall be the actuarial equivalent of his aggregate contributions and
(b) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of 2/3 of the member's actual annual compensation for which contributions were being made at the time of the occurrence of the accident or at the time of the member's retirement, whichever provides the largest possible benefit to the member.
(3) Upon receipt of proper proofs of the death of a member who has retired on accidental disability retirement allowance, there shall be paid to such member's beneficiary, an amount equal to 3 1/2 times the compensation upon which contributions by the member to the annuity savings fund were based in the last year of creditable service; provided, however, that if such death shall occur after the member shall have attained 55 years of age the amount payable shall equal 1/2 of such compensation instead of 3 1/2 times such compensation.
(4) Permanent and total disability resulting from a cardiovascular, pulmonary or musculo-skeletal condition which was not a direct result of a traumatic event occurring in the performance of duty shall be deemed an ordinary disability.
(5) At the time of application for accidental disability, the member shall file an application for workers' compensation benefits under R.S.34:15-1 et seq. or for federal Social Security disability benefits. The results of such applications shall be reported to the Division of Pensions and Benefits.
(6) Within 30 days after the date the board is authorized to take action as specified in section 1 of P.L. , c. (pending before the Legislature as this bill), the board of trustees shall meet to discuss the recommendation in the report of the Accidental Disability Pension Review Committee prepared and submitted pursuant to that section. A vote shall be taken at that meeting to adopt or reject the recommendation made in the report in its entirety without modification. If a majority of the board's membership votes in the affirmative to adopt the recommendation, the criteria shall be deemed adopted and shall be implemented by the board for all applicants who submit applications 30 days after the date of adoption by the board. If a majority of the board's membership votes to reject the recommendation, the criteria for all applicants shall not be changed. If the recommendation is rejected by the board, the board shall meet again within the following 12-month period to discuss the recommendation and shall take another vote to adopt or reject the recommendation. The board shall not be permitted to rescind the adoption of the recommendation and the committees established by subsection b. of section 13 of P.L.1944, c.255 (C.43:16A-13) shall not be permitted to change the adopted criteria.
(cf: P.L.1997, c.281, s.1)
10. Section 8 of P.L.1944, c.255 (C.43:16A-8) is amended to read as follows:
8. (1) Upon the receipt by the retirement system of a written application for a disability retirement allowance, the system shall refer the application to the medical board, which shall designate a physician or physicians to examine the applicant and the report of the medical board shall be considered by the board of trustees in acting upon such application.
(2) Any beneficiary under the age of 55 years who has been retired on a disability retirement allowance under this act, on his request shall, or upon the request of the retirement system may, be given a medical examination and he shall submit to any examination by a physician or physicians designated by the medical board once a year [for at least a period of five years] following his retirement in order to determine whether or not the disability which existed at the time he was retired has vanished or has materially diminished. If the report of the medical board shall show that such beneficiary is able to perform either his former duty or any other available duty in the department which his employer is willing to assign to him, the beneficiary shall report for duty; such a beneficiary shall not suffer any loss of benefits while he awaits his restoration to active service. If the beneficiary fails to submit to any such medical examination or fails to return to duty within 10 days after being ordered so to do, or within such further time as may be allowed by the board of trustees for valid reason, as the case may be, the pension shall be discontinued during such default.
(3) (Deleted by amendment.)
(4) If a disability beneficiary is restored to active service, his retirement allowance and the right to any death benefit as a result of his former membership, shall be canceled until he again retires.
Such person shall be reenrolled in the retirement system and shall contribute thereto at a rate based on his age at the time of prior enrollment. Such person shall be treated as an active member for determining disability or death benefits while in service.
Upon subsequent retirement of such member, he shall receive a retirement allowance based on all his service as a member computed in accordance with applicable provisions of this act, but the total retirement allowance upon subsequent retirement shall not be a greater proportion of his average final compensation or final compensation, whichever is applicable, than the proportion to which he would have been entitled had be remained in service during the period of his prior retirement. Any death benefit to which such member shall be eligible shall be based on his latest retirement.
(5) If the disability beneficiary is under normal retirement age and engaged in an occupation, then the amount of his pension shall be reduced to an amount which when added to the amount then earned by him, shall not exceed the amount of the salary now attributable to his former position. If his earnings have changed since the date of his last adjustment, then the amount of his pension may be further altered, but the new pension shall not exceed the amount of pension originally granted. Each year, the disability beneficiary shall submit to the Division of Pensions and Benefits copies of the beneficiary's federal Internal Revenue tax forms, W-2 forms, and any other proof of employment required by regulation, unless such submission is waived by the board of trustees.
(cf: P.L.1999, c.428, s.4)
11. Section 9 of P.L.1965, c.89 (C.53:5A-9) is amended to read as follows:
9. a. Upon the written application by a member in service, by one acting in his behalf or by the State, any member, under 55 years of age, who has had [four] ten or more years of creditable service as a State policeman, or [four] ten or more years of creditable service as a person formerly employed by the Division of Motor Vehicles or the Division of State Police prior to appointment as provided in section 3 of P.L.1983, c.403 (C.39:2-9.3), or [four] ten or more years of creditable service as a person formerly employed by the Alcoholic Beverage Control Enforcement Bureau, the State Capitol Police Force, or the Bureau of Marine Law Enforcement prior to appointment as provided in section 1 of P.L.1997, c.19 (C.53:1-8.2), may be retired, not less than one month next following the date of filing such application with the retirement system, on an ordinary disability retirement allowance; provided, that the medical board, after a medical examination of such member, shall certify that such member is mentally or physically incapacitated for the performance of his usual duty and of any other available duty in the Division of State Police which the Superintendent of State Police is willing to assign to him for the same amount of compensation and that such incapacity is likely to be permanent and of such an extent that he should be retired.
b. Upon retirement for ordinary disability, a member shall receive an ordinary disability retirement allowance which shall consist of:
(1) An annuity which shall be the actuarial equivalent of his aggregate contributions; and
(2) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of 1 1/2% of final compensation multiplied by his number of years of creditable service, but in no event shall the total allowance be less than 40% of final compensation.
c. Notwithstanding the provisions of subsection b. of this section, a member of the retirement system who has more than 20 but less than 25 years of creditable service and who is required to retire pursuant to subsection a. of this section upon application by the State made on or after October 1, 1988, shall receive an ordinary disability retirement allowance which shall consist of:
(1) An annuity which shall be the actuarial equivalent of the member's aggregate contributions; and
(2) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of 50% of final compensation plus 3% of final compensation multiplied by the number of years of creditable service over 20 but not over 25.
Any increase in the disability retirement allowance of a member who was required to retire on or after October 1, 1988 and prior to the effective date of this amendatory and supplementary act, P.L.1989, c.308, shall be retroactive to the date of retirement.
d. Upon the receipt of proper proofs of the death of a member who has retired on an ordinary disability retirement allowance, there shall be paid to the member's beneficiary an amount equal to three and one-half times the final compensation received by the member in the last year of creditable service; provided, however, that if such death shall occur after the member shall have attained 55 years of age, the amount payable shall equal one-half of such compensation instead of three and one-half times such compensation.
(cf: P.L.1997, c.19, s.10)
12. Section 10 of P.L.1965, c.89 (C.53:5A-10) is amended to read as follows:
10. a. Upon the written application by a member in service, by one acting in his behalf or by the State, any member may be retired, not less than 1 month next following the date of filing such application, on an accidental disability retirement allowance, provided, that the medical board, after a medical examination of such member, shall certify that the member is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties and that such disability was not the result of the member's willful negligence and that such member is mentally or physically incapacitated for the performance of his usual duties in the Division of State Police which the Superintendent of State Police is willing to assign to him or of any other available duty in the Division of State Police which the Superintendent of State Police is willing to assign to him for the same amount of compensation. The application to accomplish such retirement must be filed within [5] two years of the original traumatic event, but the board of trustees may consider an application filed after the [5-year] two-year period if it can be factually demonstrated to the satisfaction of the board of trustees that the disability is due to the accident and the filing was not accomplished within the [5-year] two-year period due to a delayed manifestation of the disability or to the member's continued employment in a restricted capacity consistent with the nature of his disability in the Division of the State Police upon and at the written request of the superintendent, with the concurrence of the Attorney General, or to other circumstances beyond the control of the member.
b. Upon retirement for accidental disability, a member shall receive an accidental disability retirement allowance which shall consist of:
(1) An annuity which shall be the actuarial equivalent of his aggregate contributions and
(2) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of 2/3 of his final compensation.
c. Upon the receipt of proper proofs of the death of a member who has retired on an accidental disability retirement allowance, there shall be paid to the member's beneficiary, an amount equal to 3 1/2 times the final compensation received by the member in the last year of creditable service; provided, however, that if such death shall occur after the member shall have attained 55 years of age the amount payable shall equal 1/2 of such compensation instead of 3 1/2 times such compensation.
d. Permanent and total disability resulting from a cardiovascular, pulmonary or musculo-skeletal condition which was not a direct result of a traumatic event occurring in the performance of duty shall be deemed an ordinary disability.
e. At the time of application for accidental disability, the member shall file an application for workers' compensation benefits under R.S.34:15-1 et seq. or for federal Social Security disability benefits. The results of such applications shall be reported to the Division of Pensions and Benefits.
f. Within 30 days after the date the board is authorized to take action as specified in section 1 of P.L. , c. (pending before the Legislature as this bill), the board of trustees shall meet to discuss the recommendation in the report of the Accidental Disability Pension Review Committee prepared and submitted pursuant to that section. A vote shall be taken at that meeting to adopt or reject the recommendation made in the report in its entirety without modification. If a majority of the board's membership votes in the affirmative to adopt the recommendation, the criteria shall be deemed adopted and shall be implemented by the board for all applicants who submit applications 30 days after the date of adoption by the board. If a majority of the board's membership votes to reject the recommendation, the criteria for all applicants shall not be changed. If the recommendation is rejected by the board, the board shall meet again within the following 12-month period to discuss the recommendation and shall take another vote to adopt or reject the recommendation. The board shall not be permitted to rescind the adoption of the recommendation and the committee established by subsection o. of section 30 of P.L.1965, c.89 (C.53:5A-30) shall not be permitted to change the adopted criteria.
(cf: P.L.1971, c.181, s.8)
13. (New section) a. Once each year and upon his application the retirement system may require any disability beneficiary who is under normal retirement age to undergo a medical examination by a physician or physicians designated by the system following his retirement in order to determine whether or not the disability which existed at the time he was retired has vanished or has materially diminished. If the disability beneficiary is under normal retirement age and engaged in an occupation, then the amount of his pension shall be reduced to an amount which when added to the amount then earned by him, shall not exceed the amount of the salary now attributable to his former position. If his earnings have changed since the date of his last adjustment, then the amount of his pension may be further altered; but the new pension shall not exceed the amount of pension originally granted. Each year, the disability beneficiary shall submit to the Division of Pensions and Benefits copies of the beneficiary's federal Internal Revenue tax forms, W-2 forms, and any other proof of employment required by regulation, unless such submission is waived by the board of trustees.
If a disability beneficiary, while under normal retirement age, refuses to submit to at least one medical examination in any year by a physician or physicians designated by the system, his pension shall be discontinued until withdrawal of his refusal. If the report of the medical board shall show that such beneficiary is able to perform either his former duty or other comparable duty which his former employer is willing to assign to him, the beneficiary shall report for duty. Such a beneficiary shall not suffer any loss of benefits while he awaits his restoration to active service. If the beneficiary fails to return to duty within 10 days after being ordered so to do, or within such further time as may be allowed by the board of trustees for valid reason as the case may be, the pension shall be discontinued during such default.
b. If a disability beneficiary becomes employed again in a position which makes him eligible to be a member of the retirement system, his allowance and the right to any death benefit as a result of his former membership shall be canceled until he retires.
Such person shall be reenrolled in the retirement system and shall be treated as an active member based upon his prior enrollment.
Upon subsequent retirement of such member, he shall receive a retirement allowance based on all his service as a member computed in accordance with applicable provisions of P.L.1965, c.89 (C.53:5A-1 et seq.), but the total retirement allowance upon subsequent retirement shall not be a greater proportion of his final compensation than the proportion to which he would have been entitled had he remained in service during the period of his prior retirement. Any death benefit to which such member shall be eligible shall be based on his latest retirement.
14. (New section) The Attorney General of the Department of Law and Pubic Safety shall establish a fraud unit with dedicated staff members for the prevention and identification of fraudulent disability pension claims and payments as administered by the Division of Pensions and Benefits in the Department of the Treasury. The unit shall develop procedures for review and investigation of disability pension claims and payments and all reports of fraud concerning such claims and payments. Such procedures shall include, but not be limited to, the systematic review of medical examination reports of physicians for patterns indicating lack of due diligence or possible fraud and the use of a fully integrated data processing system within the Division of Pensions and Benefits in the Department of the Treasury to monitor post-retirement employment through review of the wage reporting records of the Department of Labor, State vendor files, State payrolls, and federal Internal Revenue tax forms. The unit shall examine any denial of an application for workers' compensation benefits under R.S.34:15-1 et seq. or for federal Social Security disability benefits, whose submission and reported results are required of each accidental disability beneficiary, to confirm that a beneficiary is eligible for accidental disability benefits. The unit shall encourage the public to report fraudulent disability pension claims and payments and shall maintain a toll free number to receive such reports. The unit shall prescribe a form for information reported by any public employer having reason to believe that a disability pension claim or payment may be fraudulent, or having knowledge that a fraudulent disability pension claim or payment is about to take place, or has taken place. Whenever the fraud unit is satisfied that a material fraud, deceit, or intentional misrepresentation has been committed in a disability pension claim or payment or in a purported disability pension claim or payment, or a violation of other laws concerning pension disability fraud has occurred, it shall refer the matter to the Division of Criminal Justice.
15. (New section) A public employer in the State of New Jersey may establish, in consultation with the appropriate officials of the Executive Branch of State government and representatives of any relevant collective bargaining units, an early intervention plan designed to limit liability for accidental disability retirement benefits by ensuring the continued employment of injured employees through medical and vocational rehabilitation, reasonable accommodation of injured workers, and a safer workplace.
16. The following sections are repealed:
Section 10 of P.L.2010, c.3 (C.18A:66-39.1); and
Section 11 of P.L.2010, c.3 (C.43:15A-42.1).
17. This act shall take effect immediately and section 1 shall expire 150 days after the committee submits the report required by subsection d. of section 1 of this act.
STATEMENT
This bill revises the application process and eligibility criteria for receipt of a disability retirement benefit under the State-administered defined benefit pension systems, the Teachers' Pensions and Annuity Fund (TPAF), the Judicial Retirement System (JRS), the Public Employees' Retirement System (PERS), the Police and Firemen's Retirement System (PFRS), and the State Police Retirement System (SPRS). For JRS, the bill establishes an ordinary disability retirement benefit at 1½% of final salary multiplied by years of service with a minimum of 40% of final salary, and retains for an accidental disability retirement the current disability benefit of three-fourths of final salary.
Under the bill, applicants for ordinary disability and accidental disability retirement must be certified as not only incapacitated for the performance of former duty but also for any other available duty which the employer is willing to assign for the same amount of compensation. For members of JRS, PFRS and SPRS, an ordinary disability retirement would not be available until the member has 10 years of service, instead of the current requirement of four years for PFRS and SPRS and nominal years for JRS. Application for accidental disability retirement must be filed within two years, instead of the current five years, of the original traumatic event and must coincide with an application for workers' compensation benefits or for federal Social Security disability benefits. The results of those applications are to be reported to the Division of Pensions and Benefits. Currently, a retirement system may require a disability beneficiary to undergo a medical examination for a period of 5 years following the disability retirement. The bill provides for such an examination at the option of the system until the beneficiary achieves a certain age.
The bill provides that if a JRS, PFRS or SPRS disability retiree is under normal retirement age and engaged in an occupation, then the amount of the pension the retiree receives will be reduced to an amount which, when added to the amount then earned, will not exceed the amount of the salary now attributable to the retiree's former position. This earnings restriction already applies to TPAF and PERS disability retirees. The bill requires the disability retirees to submit annually to the Division of Pensions and Benefits copies of the retiree's federal Internal Revenue tax forms, W-2 forms, and any other proof of employment required by regulation, unless such submission is waived by the board of trustees of the pension fund of which the retiree is a member.
The bill repeals the provisions of TPAF and PERS added in 2010 that provided disability insurance coverage, rather than a disability pension, for employees enrolled in the TPAF or PERS on or after the effective date of P.L.2010, c.3.
In addition, the bill requires the Attorney General of the Department of Law and Public Safety to establish a fraud unit for the prevention and identification of fraudulent disability pension claims and payments, using procedures that include, but are not limited to, the systematic review of medical examination reports of physicians for patterns indicating possible fraud, use of a fully integrated data processing system within the Division of Pensions and Benefits to monitor post-retirement employment through review of the wage reporting records of the Department of Labor, State vendor files, State payrolls, and federal Internal Revenue tax forms, as well as a toll-free number for reports from the public. The unit will also examine any denial of an application for workers' compensation benefits or for federal Social Security disability benefits, whose submission and reported results are required of each accidental disability beneficiary, to confirm that a beneficiary is eligible for accidental disability benefits. Whenever the fraud unit is satisfied that a material fraud, deceit, or intentional misrepresentation has been committed in a disability pension claim or payment or in a purported disability pension claim or payment, or a violation of other laws concerning pension disability fraud has occurred, it will refer the matter to the Division of Criminal Justice.
The bill also permits a public employer to establish, in consultation with the appropriate officials of the Executive Branch of State government and representatives of any relevant collective bargaining units, an early intervention plan designed to limit liability for accidental disability retirement benefits by ensuring the continued employment of injured employees through medical and vocational rehabilitation, reasonable accommodation of injured workers, and a safer workplace.
Finally, the bill creates a temporary Accidental Disability Pension Review Committee. The 26-member committee will study the current requirement that a member of TPAF, JRS, PERS, PFRS and SPRS must be permanently and totally disabled as a direct result of a traumatic event to be deemed eligible for the receipt of an accidental disability benefit and develop a recommendation for specific criteria detailing what must be demonstrated by a member in order to meet the traumatic event eligibility standard of that requirement. The committee will make only one recommendation in the form of proposed legislation. The report containing the recommendation will be transmitted, within 15 days after its adoption, to the President of the Senate and the Speaker of the General Assembly, to the members of the Legislature, to the Governor, and to the boards of trustees of the TPAF, PERS, PFRS, and SPRS and the State House Commission, which oversees JRS.
Within 90 days after receipt of the report, the Legislature must vote on legislation based on the recommendation of the committee. If both Houses of the Legislature do not pass legislation within 90 days, or if both Houses do pass legislation but the Governor does not sign it within 30 days after passage by both Houses, each of the boards of trustees and commission will meet to discuss the recommendation in the report. A vote will be taken at that meeting to adopt or reject the recommendation in its entirety without modification. If a majority of the membership votes in the affirmative, the criteria will be deemed adopted and will be implemented by the board or commission for all applicants who submit applications 30 days after the date of adoption. If a majority of the membership votes to reject the recommendation, the criteria for all applicants will not be changed. If the recommendation is rejected, the board or commission will meet again within the following 12-month period to discuss the recommendation and will take another vote to adopt or reject the recommendation. The boards or commission cannot rescind the adoption of the recommendation and neither the committees of TPAF, PERS, PFRS and SPRS nor the commission can change the adopted criteria.
