Sponsored by:
Assemblyman FREDERICK SCALERA
District 36 (Bergen, Essex and Passaic)
Assemblyman RALPH R. CAPUTO
District 28 (Essex)
SYNOPSIS
Allows PFRS retiree to be reemployed by office of county prosecutor without reenrolling in PFRS.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the reemployment of a retiree of the Police and Firemen’s Retirement System and amending P.L.1971, c.175.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 20 of P.L.1971, c.175 (C.43:16A-15.3) is amended to read as follows:
20. [If] Except as provided in subsection b. of this section, if a former member of the retirement system who has been granted a retirement allowance for any cause other than disability, 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 reenrollment. Such person shall be treated as an active member for determining disability or death benefits while in service. Upon subsequent retirement of such member, his former retirement allowance shall be reinstated based on his former membership. In addition, he shall receive an additional retirement allowance based on his subsequent service as a member computed in accordance with applicable provisions of this chapter; provided, however, that his total retirement allowance upon such 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 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, but shall not be less than the death benefit that was applicable to his former retirement.
b. The cancellation, reenrollment, and additional retirement allowance provisions of subsection a. of this section shall not apply to a former member of the retirement system who, after having been granted a retirement allowance, becomes employed by the office of a county prosecutor.
(cf: P.L.1999, c.428, s.8)
2. This act shall take effect immediately.
STATEMENT
This bill adds an exception to the reenrollment requirement for retirees of the Police and Firemen’s Retirement System (PFRS). Current law requires that if a PFRS retiree becomes employed again in a position covered by the retirement system, the person must be reenrolled in PFRS and receipt of a PFRS retirement allowance ceases. Once the person again retires, a PFRS retirement allowance is calculated upon the additional service and added to the original retirement allowance.
The bill exempts from reenrollment a PFRS retiree who becomes reemployed by the office of a county prosecutor. The retiree would be allowed to continue to collect a PFRS retirement allowance as well as the salary associated with the new employment.