State House
New Jersey Legislature
News from around the state
go
www.njleg.state.nj.us
 
Executive Branch | Judicial Branch | Judicial Legislative News | Downloads | Welcome to the State House | Información en Español
 
 

 

   


Our Legislature
Legislative Process
Historical Info
Public Info Assistance
Kids' Page


Find your Legislator
Legislative Leadership
Legislative Roster
Seating Charts


Districts by Number
District Map
Municipalities Index


Senate Committees
  - Committee Aides
Assembly Committees
  -Committee Aides
Joint Committees
  -Committee Aides
Committee Groups
Legislative
  Commissions

Senate Nominations


Statutes
Chapter Laws
Constitution


Senate
General Assembly


Conflicts of Interest
  Law

Code Of Ethics
Financial Disclosure
  Termination or
    Assumption of
    Public Employment
    Form

Formal Advisory Opinions
Contract Awards
Joint Rule 19
Ethics Tutorial


CLE Registration
    Form

Certification for
    CLE Ethics Credit

CLE Presentation
    Schedule


Legislative Calendar
Legislative Digest
Legislative LDOA
Budget and Finance
Audit Reports
Legislative Reports
Public Hearing
  Transcripts

Property Tax Reform
Glossary
Summary of
   Enactments

Disclaimer/
  Privacy Policy


Submit an OPRA request

ABOUT SSL CERTIFICATES

vertical line
Special Session on Property Tax Reform
   

JOINT LEGISLATIVE COMMITTEE ON PUBLIC EMPLOYEE BENEFITS REFORM


    FINAL REPORT - issued November 15, 2006, revised December 1, 2006
    EXECUTIVE SUMMARY


View/Hear Meetings

Establishment

The Joint Legislative Committee on Public Employee Benefits Reform was created by Assembly Concurrent Resolution No. 3. It is the duty of the committee to review and formulate proposals that address abuses of the system of benefits provided to public employees and to control the costs of the State and its political subdivisions for public employee retirement, health care and other benefits. As a basis for its deliberations, the committee will use the recommendations of the Benefits Review Task Force contained in its December 1, 2005 report, as well as other relevant reports.

Committee Members

Senator Nicholas P. Scutari  -  Co-Chair
Assemblywoman Nellie Pou  -  Co-Chair
Assemblyman Thomas P. Giblin
Assemblyman Kevin J. O'Toole
Senator Ronald L. Rice

Committee Aides

Pamela H. Espenshade, OLS Aide (609) 292-9106
George J. LeBlanc, Senate Democratic Aide (609) 292-5215
Christian Martin, Senate Democratic Aide (609) 292-5215
Olga Betz, Senate Republican Aide (609) 292-5199
Laurine Purola, Senate Republican Aide (609) 292-5199
Aaron Binder, Assembly Democratic Aide (609) 292-7065
Karina Fuentes, Assembly Democratic Aide (609) 292-7065
John Kingston, Assembly Republican Aide (609) 292-5339
Jerry Traino, Assembly Republican Aide (609) 292-5339


Reports
    FINAL REPORT - issued November 15, 2006, revised December 1, 2006

    EXECUTIVE SUMMARY


Meeting Transcripts
    Transcription of Committee Meeting   -   8/9/2006

    Transcription of Committee Meeting   -   8/23/2006

    Transcription of Committee Meeting   -   8/24/2006

    Transcription of Committee Meeting   -   8/31/2006

    Transcription of Committee Meeting   -   9/13/2006

    Transcription of Committee Meeting   -   9/19/2006

    Transcription of Committee Meeting   -   10/12/2006

    Transcription of Committee Meeting   -   10/18/2006

    Transcription of Committee Meeting   -   10/25/2006

    Transcription of Committee Meeting   -   11/27/2006

    Transcription of Committee Meeting   -   12/7/2006


Written Testimony Submitted to Committee
    October 18, 2006

    Presentation Submitted on November 13, 2006

    Letters Submitted

    October 12, 2006

    September 19, 2006

    August 9, 2006


Resources
    Legal Opinion Provided for the JOINT LEGISLATIVE COMMITTEE ON PUBLIC EMPLOYEE BENEFITS REFORM   -   8/23/2006
     Prepared by the Office of Legislative Services
    Division of Pensions and Benefits Response to Questions Raised by the Committee at the August 31, 2006 Meeting   -   9/26/2006
     Prepared by the New Jersey Division of Pensions and Benefits
    Reforming the State Health Benefits Program for Local Employers   -   10/6/2006
     Prepared by NJ League of Municipalities, NJ Council of County Colleges, NJ School Boards Association and the NJ Association of Counties
    Suggestions for Legislative Reforms for Part Time Employees Enrolled in the Pension System   -   10/5/2006
     Prepared by the NJ Institute of Local Government Attorneys
    Legal Opinion Re: Limitations on the Ability of the Legislature to Reduce Retirement Benefits Provided to Public Employees Under Certain Pension Systems   -   8/24/2006
     Prepared by the Office of the Attorney General
    Division of Pensions and Benefits Response to Questions Raised by the Committee at the August 9, 2006 Meeting   -   8/28/2006
     Prepared by the New Jersey Division of Pensions and Benefits
    List of Research Resources Provided for the JOINT LEGISLATIVE COMMITTEE ON PUBLIC EMPLOYEE BENEFITS REFORM   -   8/9/2006
     Compiled by the Office of Legislative Services
    Division of Pensions and Benefits Response to Questions Raised by the Committee at the August 24, 2006 Meeting   -   9/15/2006
     Prepared by the New Jersey Division of Pensions and Benefits

Presentations
    Comparative Benefits for Public Workers: Unlocking the Truth through Indexing   -   10/18/2006
     Presented by Communications Workers of America (CWA) Local 1033
    New Jersey State Health Benefits Program   -   9/13/2006
     Presented by Frederick J. Beaver, Director of the New Jersey Division of Pensions and Benefits
    State of the State Pension Systems   -   8/24/2006
     Presented by Frederick J. Beaver, Director of the New Jersey Division of Pensions and Benefits
    Presentation   -   8/9/2006
     Presented by Frederick J. Beaver, Director of the New Jersey Division of Pensions and Benefits
    New Jersey Alternate Benefit Program: Overview   -   8/31/2006
     Presented by Frederick J. Beaver, Director of the New Jersey Division of Pensions and Benefits
    Defined Benefit Plans Versus Defined Contribution Plans   -   8/31/2006
     Presented by William A. Reimert, Consulting Actuary, Milliman USA
    New Jersey Transit: Transition from Defined Benefit Pension Plans to Defined Contribution Pension Plans   -   8/31/2006
     Presented by H. Charles Wedel, Chief Financial Officer and Treasurer, New Jersey Transit

The following legislation relevant to the topics being studied by this special committee has been introduced in the 2006-07 legislative session

PENSION ENROLLMENT THRESHOLD
 
    S986 Increases eligible compensation level for enrollment in TPAF to $5,000.
 
    S1507 Increases from $15,000 to $25,000 annual compensation PERS retiree may earn in PERS-covered employment without reenrollment.
 
    A1196 Increases from $15,000 to $25,000 annual compensation PERS retiree may earn in PERS-covered employment without reenrollment.
 
    S2113 Increases enrollment threshold in PERS and TPAF to $10,000.
 
    A160 Changes compensation trigger for reenrollment of PERS retiree from $15,000 in aggregate to $15,000 per public employer.
 
    A450 Increases eligible compensation level for enrollment in TPAF to $10,000.
 
    A3146 Increases enrollment threshold in PERS and TPAF to $10,000; changes definition of compensation used to calculate benefits in PERS, TPAF, PFRS, SPRS, and JRS to average annual compensation of all service years.

RETIREMENT SYSTEM MEMBERSHIP FOR LEGISLATORS AND OTHERS
 
    A3465 Eliminates membership in the legislative part of PERS for future members of the Legislature.
 
    S2283 Prohibits enrollment in PERS of public employee who is also public contractor; requires member to designate only one position as basis of enrollment.

PENSION CREDIT AND ENROLLMENT FOR PART-TIME PUBLIC EMPLOYEES
 
    S2178 Eliminates membership in various State-administered retirement systems for part-time public employees and elected officials commencing service after enactment; clarifies that part-time public employees and officials are ineligible for employer-paid health care.
 
    A3509 Eliminates membership in various State-administered retirement systems for part-time public employees and elected officials commencing service after enactment; clarifies that part-time public employees and officials are ineligible for employer-paid health care.
 
    A118 Requires part-time service by new PERS members to be credited at one half the length of that service for certain benefit calculation purposes.
 
    A3021 "Part-time Public Employees and Elected Officials Pension Reform Act" ends retirement system enrollment for Legislators and part-time public employees and elected officials commencing service after enactment.

PUBLIC EMLOYEES HOLDING MORE THAN ONE POSITION
 
    S718 Provides that PERS member holding more than one position covered by PERS has to designate one position as the basis for enrollment.
 
    A119 Provides that PERS member holding more than one position covered by PERS has to designate one position as the basis for enrollment.
 
    S726 Requires legislators with simultaneous PERS-covered elected office or employment to choose one position for receipt of PERS credit.
 
    A696 Requires legislators with simultaneous PERS-covered elected office or employment to choose one position for receipt of PERS credit.
 
    S1943 Requires PERS designate position providing least compensation, for member holding concurrent positions, as compensation base for contributions and pension calculations.
 
    A3012 Requires PERS designate position providing least compensation, for member holding concurrent positions, as compensation base for contributions and pension calculations.
 
    S1945 Requires legislators to designate one covered position of elected office or employment for PERS credit.
 
    A527 Requires legislators to designate one covered position of elected office or employment for PERS credit.
 
    S2061 Permits elected officials and legislators with simultaneous PERS-covered elected office or employment to choose only one position for receipt of PERS credit.
 
    A3403 Permits elected officials and legislators with simultaneous PERS-covered elected office or employment to choose only one position for receipt of PERS credit.
 
    A3543 Requires current and new PERS members holding more than one position covered by PERS to designate one position for PERS credit.
 
    A3549 Requires new PERS members holding more than one position covered by PERS to designate one position for PERS credit.
 
    S2283 Prohibits enrollment in PERS of public employee who is also public contractor; requires member to designate only one position as basis of enrollment.

AGE FOR UNREDUCED EARLY RETIREMENT PENSION BENEFIT
 
    S2036 Changes age of eligibility for TPAF and PERS early retirement option without benefit reduction from 55 to 60 for new enrollees.
 
    A3475 Changes age of eligibility for TPAF and PERS early retirement option without benefit reduction from 55 to 60 for new enrollees.
 
    A3498 Changes age of eligibility for TPAF and PERS early retirement option without benefit reduction from 55 to 60 for new enrollees.

DEFINITION OF COMPENSATION FOR PENSION CALCULATIONS
 
    S2176 Changes prospectively definition of compensation used to calculate benefits in PERS and TPAF to average of five highest-paid years and in PFRS, SPRS, and JRS to average of three highest-paid years.
 
    A3507 Changes prospectively definition of compensation used to calculate benefits in PERS and TPAF to average of five highest-paid years and in PFRS, SPRS, and JRS to average of three highest-paid years.
 
    S2179 Provides that public employee pension benefits are calculated on base salary exclusive of various forms of extra compensation.
 
    A3510 Provides that public employee pension benefits are calculated on base salary exclusive of various forms of extra compensation.
 
    A3146 Increases enrollment threshold in PERS and TPAF to $10,000; changes definition of compensation used to calculate benefits in PERS, TPAF, PFRS, SPRS, and JRS to average annual compensation of all service years.

COMPENSATION INCREASES BEFORE RETIREMENT
 
    S719 Changes calculation of PERS retirement allowances for certain members who receive significant compensation enhancement within five years of retirement.
 
    A3547 Provides for calculation of retirement allowance based on average annual compensation for ten years of service for certain PERS members who retire after enactment.
 
    A3548 Provides for calculation of retirement allowance based on average annual compensation for ten years of service for certain PERS members who enroll after enactment.

PENSION BENEFIT FOR SURVIVORS
 
    A2528 Provides retirement allowance option to surviving spouses of deceased vested PERS and TPAF members.

FORFEITURE OF PENSION BENEFIT
 
    S67 Imposes mandatory terms of imprisonment and forfeiture of pension and retirement benefits for public officers or employees convicted of certain crimes involving or touching their office or employment. *
 
    A958 Imposes mandatory minimum terms of imprisonment and forfeiture of pension and retirement benefits for public officers or employees convicted of crimes involving or touching their office or employment.
 
    A3404 Imposes mandatory terms of imprisonment and forfeiture of pension and retirement benefits for public officers or employees convicted of certain crimes involving or touching their office or employment.
 
    S153 Requires that public officers or public employees convicted of crimes involving their office or employment be sentenced to mandatory prison terms and forfeit pension benefits.
 
    A1921 Requires that public officers or public employees convicted of crimes involving their office or employment be sentenced to mandatory prison terms and forfeit pension benefits.
 
    S825 Provides for mandatory forfeiture of retirement benefits of elected official convicted of crime involving office held.
 
    A957 Provides for mandatory forfeiture of retirement benefits of elected official convicted of crime involving office held.
 
    S1252 Limits criteria to be considered in evaluating forfeiture of pension benefits involving elected official.
 
    S724 Establishes new standard and procedure for forfeiture of elective public office for accepting illegal contributions; removes illegal contribution threshold for such forfeiture.
 
    A699 Establishes new standard and procedure for forfeiture of elective public office for accepting illegal contributions; removes illegal contribution threshold for such forfeiture.
 
    A2842 Requires forfeiture of public office upon conviction of fourth degree crime or higher; disqualifies person from future office upon conviction of fourth degree crime or higher or conviction of crime involving dishonesty.

NEW DEFINED CONTRIBUTION RETIREMENT SYSTEM
 
    A2772 Increases various penalties for violations of the pension laws.
 
    S2180 Creates defined contribution program for elected officials and certain appointed public officials.
 
    A120 Establishes Defined Contribution Public Employees' Retirement Program.

PENSION STUDY COMMISSIONS
 
    S1501 Establishes State-Administered Retirement Systems Study Commission.
 
    A680 Establishes State-Administered Retirement Systems Study Commission.
 
    A121 Establishes Public Employees' Defined Contribution Plan Study Commission.
 
    AJR118 Creates Pension Enhancements Study Commission.

MANDATORY SHBP PARTICIPATION
 
    A1218 Requires local boards of education to join SHBP; requires State to pay SHBP costs for board employees; requires property tax relief in amount of savings by boards on health care benefit costs.
 
    A3095 Requires local boards of education to join SHBP.

COST SHARING FOR HEALTH CARE BENEFITS
 
    S1147 Authorizes county colleges to establish cafeteria plans; requires establishment of cafeteria plans and collective negotiation of waiver terms prior to offering employees incentive to waive health care benefits.
 
    S2163 Permits local employers in SHBP to negotiate benefits and cost sharing with employees; permits local employers to offer incentives to employees for waivers of SHBP coverage; requires annual independent review of SHBP.
 
    S2173 Changes payment obligation of State and other public employers for SHBP coverage for employees and dependents to no more than 90 percent of SHBP cost.
 
    A3499 Changes payment obligation of State and other public employers for SHBP coverage for employees and dependents to no more than 90 percent of SHBP cost.
 
    S2174 Provides State and local governments will pay 90 percent of cost of post-retirement SHBP benefits for future retirees.
 
    A3504 Provides State and local governments will pay 90 percent of cost of post-retirement SHBP benefits for future retirees.
 
    A553 Allows local employers in SHBP to negotiate premium payments with unions.

WAIVER OF HEALTH CARE BENEFITS
 
    S1153 Permits certain county and municipal employees to waive benefits coverage under the State Health Benefits Program when covered by a spouse's benefits plan.
 
    S1476 Allows counties and local contracting units to offer incentive to waive SHBP coverage to employees eligible for other health care coverage.
 
    A2846 Allows counties and local contracting units to offer incentive to waive SHBP coverage to employees eligible for other health care coverage.
 
    S1516 Allows school boards to offer incentive to waive SHBP coverage to employees eligible for spouse's health care coverage.
 
    A1860 Allows school boards to offer incentive to waive SHBP coverage to employees eligible for spouse's health care coverage.
 
    S2163 Permits local employers in SHBP to negotiate benefits and cost sharing with employees; permits local employers to offer incentives to employees for waivers of SHBP coverage; requires annual independent review of SHBP.

HEALTH BENEFITS FOR PUBLIC EMPLOYEES WITH MULTIPLE POSITIONS
 
    S1125 Prohibits certain elected officials from receiving dual health benefit coverage.
 
    A1691 Prohibits certain elected officials from receiving dual health benefit coverage.
 
    S2175 Requires that public employees who are married or with domestic partners receive health care benefits from only one public employer.
 
    A3503 Requires that public employees who are married or with domestic partners receive health care benefits from only one public employer.
 
    A122 Prohibits elected officials and public employees from enrolling for health benefits with more than one public entity; provides civil action for treble expenses by public entity providing additional coverage.
 
    A1681 Prohibits certain elected officials and appointed officers from receiving dual health benefit coverage.

CONTRACT FOR SHBP PRESCRIPTION DRUG BENEFIT
 
    S1577 Provides that separate contract must be awarded for pharmacy benefit management services in connection with SHBP drug prescription benefits.

MEDICAL SAVINGS ACCOUNT FOR SHBP
 
    A2586 "Medical Savings Account Option Act" for SHBP.

SUPPLEMENTAL COMPENSATION AT RETIREMENT FOR UNUSED LEAVE
 
    S679 Prohibits certain terminal leave compensation for local elected officials.
 
    S681 Requires repayment of terminal leave sick and longevity compensation upon reemployment with State or local government.
 
    S720 Limits payment for certain supplemental compensation and accumulated vacation leave upon retirement for certain local government employees.
 
    S970 Limits certain supplemental compensation upon retirement for local government employees to a maximum of $15,000.
 
    S1747 Caps supplemental compensation for unused sick leave for school administrators at $15,000.
 
    A1521 Caps supplemental compensation for unused sick leave for school administrators at $15,000.
 
    S1873 Limits leave and supplemental compensation benefits for school district superintendents, assistant superintendents, and school business administrators; provides procedures and penalties for enforcement of TPAF provisions.
 
    A3011 Limits leave and supplemental compensation benefits for school district superintendents, assistant superintendents, and school business administrator; provides procedures and penalties for enforcement of TPAF provisions.
 
    A530 Prohibits supplemental compensation for unused sick leave for public school employees with an annual salary of $100,000 or more.
 
    A2873 Prohibits supplemental compensation for unused sick leave for public school and municipal employees with annual compensation of $100,000 or more.
 
    A2887 Limits payment to certain public employees for accumulated sick leave upon retirement; requires fine and reprimand or termination for violation of sick leave by public employee.
 
    S2324 Limits payment to $15,000 for accumulated sick leave upon retirement for local public employees.

SICK LEAVE INJURY PROGRAM
 
    S1992 Terminates sick leave injury program for State employees injured after July 1, 2006 or upon expiration of current collective negotiation agreement.
 
    A3502 Terminates sick leave injury program for State employees injured after July 1, 2006 or upon expiration of current collective negotiation agreement.
 
    S2238 Terminates sick leave injury program for certain State employees injured after January 1, 2007 or expiration of current collective negotiation agreement.

PUBLIC EMPLOYEE LEAVE
 
    S2172 Permits unused vacation and sick leave by public employee to be carried forward for one year only; requires unused administrative leave to be cancelled.
 
    A3496 Limits administrative leave to three days and reduces number of paid holidays from 13 to 10 for State and local government employees.
 
    A3497 Permits unused vacation and sick leave by public employee to be carried forward for one year only; requires unused administrative leave to be cancelled.

PUBLIC EMPLOYEE WORK HOURS
 
    S2170 Provides that regular work week of all newly-hired full-time State or local government employees will be 40 hours.
 
    A3495 Provides that regular work week of all newly-hired full-time State or local government employees will be 40 hours.

STATE EMPLOYEE VACANCY AND REDUCTION
 
    S2160 Requires reduction in number of State employees to FY2000 level; establishes procedure to control creation of new State positions and filling of vacancies.
 
    A3482 Requires reduction in number of State employees to FY2000 level; establishes procedure to control creation of new State positions and filling of vacancies.
 
    S1114 Establishes Vacancy Review Board in the Department of Personnel to review continued need for positions in Executive Branch that become vacant.
 
    A377 Establishes Vacancy Review Board in the Department of Personnel to review continued need for positions in Executive Branch that become vacant.

PUBLIC EMPLOYEE COMPENSATION
 
    S1966 Reduces compensation of members of Legislature by 15%.
 
    A3402 Reduces compensation of members of Legislature by 15%.
 
    S2177 Prohibits payments of public employee bonuses not directly contingent upon achieving certain performance goals.
 
    A3505 Prohibits payment of public employee bonuses not directly contingent upon achieving certain performance goals.
 
    A2896 Limits compensation and contracts of State and local government officers and employees.
 
    A3363 Requires DOP to generate compensation guidelines to help counties and municipalities determine appropriate pay for various positions.
 
    A3544 Prohibits receipt of compensation or benefits for multiple elective public offices held.

SHBP PLANS
 
    S2282 Makes certain changes to State Health Benefits Program.
 
    A3618 Makes certain changes to State Health Benefits Program.

divider

  home | back

   

Document Formats Used on this Siteemail for Legislative infoemail Webmaster
©2002 New Jersey Office of Legislative Services