ASSEMBLY, No. 4376
STATE OF NEW JERSEY
219th LEGISLATURE
INTRODUCED JULY 2, 2020
Sponsored by:
Assemblyman JOHN J. BURZICHELLI
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Clarifies PERS membership restoration includes unclassified employees.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the return to service by unclassified employees in the Public Employees' Retirement System and amending P.L.1954, c.84.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 8 of P.L.1954, c.84 (C.43:15A-8) is amended to read as follows:
8. a. If a member of the retirement system, including a member who is an employee in the unclassified service of the civil service, has been discontinued from service without personal fault or through leave of absence granted by an employer or permitted by any law of this State and has not withdrawn the accumulated member's contributions from the retirement system, the membership of that member may continue, notwithstanding any provisions of this act if the member returns to service within a period of 10 years from the date of discontinuance from service.
No credit for pension purposes shall be allowed to the member covering the period of the discontinuance, unless leave of absence shall have been granted by the employer and the board, as provided for in section 39 of [this act] P.L.1954, c.84 (C.43:15A-39).
b. If an employee who has withdrawn the accumulated member's contributions from the former "State Employees' Retirement System" or the retirement system as provided in section 41 of [this act] P.L.1954, c.84 (C.43:15A-41) is re-enrolled as a member of the retirement system, that member may purchase credit for all of the previous membership service by paying into the annuity savings fund the amount required by applying the factor, supplied by the actuary as being applicable to the member's age at the time of the purchase, to the member's salary at that time, or to the highest annual compensation for service in this State for which contributions shall have been made during any fiscal year of membership or to the highest annual compensation for service in this State during any fiscal year for which credit is purchased, whichever is highest. The purchase may be made in regular installments, equal to at least one-half the full normal contribution to the retirement system, over a maximum period of 10 years.
Any member electing to purchase service credit hereunder who retires prior to completing the payments as agreed with the retirement system will receive pro rata credit for service purchased prior to the date of retirement, but if the member so elects at the time of retirement, the member may make the additional lump-sum payment required at that time to provide full credit.
(cf: P.L.1991, c.138, s.6)
2. a. Any member of the retirement system whose request for continuation of membership has been denied within three years prior to enactment of P.L. , c. (pending before the Legislature as this bill), pursuant to section 8 of P.L.1954, c.84 (C.43:15A-8), because the member was previously in the unclassified service shall be eligible to continue their membership in the retirement system, provided the member files an application for the continuation of membership within one year of enactment and is otherwise eligible.
b. The board of trustees of the Public Employees' Retirement System, in consultation with the Division of Pensions and Benefits, shall, within 30 days following the effective date of P.L. , c. (pending before the Legislature as this bill), establish a form for submission by an applicant pursuant to this section.
3. This act shall take effect immediately and section 2 of this act shall expire on the 366th day following enactment.
STATEMENT
This bill clarifies the existing law concerning membership restoration in the Public Employees' Retirement System (PERS).
Under current law, it is unclear whether the 10-year extension for PERS members to return to service at their previous membership tier and level of benefits applies to employees in the unclassified service in the civil service. This bill clarifies the language to clearly state that unclassified employees do qualify for the extension.
This bill also permits PERS members who were denied a continuation of their membership within the three years prior to enactment of this bill, because the member was previously in the unclassified service, to reapply during a one-year period following the enactment date. The board of trustees of PERS, in consultation with the Division of Pensions and Benefits, would be required to develop a form for submission by an applicant seeking a continuation of their membership.