STATE OF NEW JERSEY
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Assemblywoman ALISON LITTELL MCHOSE
District 24 (Morris, Sussex and Warren)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Assemblywoman CAROLINE CASAGRANDE
District 11 (Monmouth)
Assemblyman DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
Assemblywoman Angelini, Assemblyman Space, Assemblywoman Handlin, Assemblyman Peterson, Assemblywoman N.Munoz and Assemblyman Webber
Suspends pension of any retired public employee who resumes public employment with compensation more than $15,000.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning the suspension of the pensions of certain retired public employees who are employed by a public entity and amending P.L.1968, c.23.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1968, c.23 (C.43:3C-1) is amended to read as follows:
1. Notwithstanding any other law to the contrary, if a former member of any pension fund or retirement system, contributory or noncontributory, established under any law of this State, who has been granted a pension or retirement allowance for any cause [other than vesting or deferred retirement, becomes] is employed [again] in a position [which makes him] with a public employer for which the compensation is more than $15,000, such person shall not be eligible to be a member of [another] any pension fund or retirement system established under any law of this State[, such person shall not be enrolled in such other pension fund or retirement system if he is eligible to receive such] and the person’s pension or retirement allowance shall be suspended until the person no longer is employed by a public employer in a position with compensation more than $15,000. The employed retiree shall retain the right to the death benefit based on the suspended pension or retirement allowance. The Director of the Division of Pensions and Benefits may from time to time adjust the compensation amount to reflect 3/5 of the percentage of change in the index, as defined in section 1 of P.L.1958, c.143 (C.43:3B-1), over a period of time as determined by the director.
(cf: P.L.1991, c.276, s.1)
2. This act shall take effect on the 90th day after the date of enactment.
This bill provides that if a former member of any public retirement system established under any State law, who has been granted a retirement benefit becomes employed again in a position with a public employer for which the compensation is more than $15,000, the person will not be eligible to be a member of any public retirement system and the person’s retirement benefit will be suspended until the person no longer is employed by a public employer in a position with compensation more than $15,000. The reemployed person will retain the right to the death benefit based on the suspended retirement benefit. The Director of the Division of Pensions and Benefits may from time to time adjust the $15,000 compensation amount to reflect inflation.
Current law provides that if a retiree becomes employed again in a position which makes the retiree eligible to be a member of the same retirement system, the retiree will be reenrolled in the system and cease to receive a retirement benefit. Exceptions to that general rule exist for certain reemployment arrangements for retirees of the Teachers’ Pension and Annuity Fund and the Public Employees’ Retirement System and for certain elected officials. If a retiree becomes employed again in a position which makes the retiree eligible to be a member of a public retirement system different from the one providing a retirement benefit, the retiree does not enroll in the other system and continues to receive a retirement benefit as well as the salary for the public employment.
Under the bill, retirees of all public retirement systems who become reemployed in public positions paying more than $15,000, outside the current exceptions, will give up receipt of their current retirement benefits, payment of which will resume upon cessation of the reemployment.