ASSEMBLY, No. 566
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblywoman TURNER
An Act concerning membership 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 7 of P.L.1954, c.84 (C.43:15A-7) is amended to read as follows:
7. There is hereby established the Public Employees' Retirement System of New Jersey in the Division of Pensions and Benefits of the Department of the Treasury. The membership of the retirement system shall include:
a. The members of the former "State Employees' Retirement System of New Jersey" enrolled as such as of December 30, 1954, who shall not have claimed for refund their accumulated deductions in said system as provided in this section;
b. Any person becoming an employee of the State or other employer after January 2, 1955 and every veteran, other than those whose appointments are seasonal, becoming an employee of the State or other employer after such date, including a temporary employee with at least one year's continuous service; and
c. Every employee veteran in the employ of the State or other employer on January 2, 1955, who is not a member of any retirement system supported wholly or partly by the State.
d. Membership in the retirement system shall be optional for:
(1) elected officials other than veterans[, and for];
(2) school crossing guards, who having become eligible for benefits under other pension systems are so employed on a part-time basis. Any such part-time school crossing guard who is eligible for benefits under any other pension system and who was hired as a part-time school crossing guard prior to March 4, 1976, may at any time terminate his membership in the retirement system by making an application in writing to the board of trustees of the retirement system. Upon receiving such application, the board of trustees shall terminate his enrollment in the system and direct the employer to cease accepting contributions from the member or deducting from the compensation paid to the member; and
(3) retirees under the retirement system who are employed as school crossing guards on a part-time basis and are 65 years of age or more at the time of employment. Such retirees shall continue to receive any retirement allowance or other benefits which they received prior to employment if they elect not to reenroll in the retirement system. If such a retiree elects to reenroll, the employee shall apply for reenrollment as a member of the retirement system no later than 90 days after the commencement of employment. Once such an employee is reenrolled, the employee shall not have the option to terminate membership other than as provided for other members of the retirement system.
State employees who become members of any other retirement system supported wholly or partly by the State as a condition of employment shall not be eligible for membership in this retirement system. Notwithstanding any other law to the contrary, all other persons accepting employment in the service of the State shall be required to enroll in the retirement system as a condition of their employment, regardless of age. No person in employment, office or position, for which the annual salary or remuneration is fixed at less than $1,500.00, shall be eligible to become a member of the retirement system.
e. Membership of any person in the retirement system shall cease if he shall discontinue his service for more than two consecutive years.
f. The accumulated deductions of the members of the former "State Employees' Retirement System" which have been set aside in a trust fund designated as Fund A as provided in section 5 of this act and which have not been claimed for refund prior to February 1, 1955 shall be transferred from said Fund A to the Annuity Savings Fund of the Retirement System, provided for in section 25 of this act. Each member whose accumulated deductions are so transferred shall receive the same prior service credit, pension credit, and membership credit in the retirement system as he previously had in the former "State Employees' Retirement System" and shall have such accumulated deductions credited to his individual account in the Annuity Savings Fund. Any outstanding obligations of such member shall be continued.
g. Any school crossing guard electing to terminate his membership in the retirement system pursuant to subsection d. of this section shall, upon his request, receive a refund of his accumulated deductions as of the date of his appointment to the position of school crossing guard. Such refund of contributions shall serve as a waiver of all benefits payable to the employee, to his dependent or dependents, or to any of his beneficiaries under the retirement system.
h. A temporary employee who is employed under the federal Job Training Partnership Act, Pub.L. 97-300 (29 U.S.C. § 1501) shall not be eligible for membership in the system. Membership for temporary employees employed under the federal Job Training Partnership Act, Pub.L. 97-300 (29 U.S.C. § 1501) who are in the system on the effective date of this 1986 amendatory act shall be terminated, and affected employees shall receive a refund of their accumulated deductions as of the date of commencement of employment in a federal Job Training Partnership Act program. Such refund of contributions shall serve as a waiver of all benefits payable to the employee, to his dependent or dependents, or to any of his beneficiaries under the retirement system.
(cf: P.L.1986, c.139, s.1)
2. (New section) A member of the retirement system on the effective date of this amendatory act, P.L. , c. (now pending before the Legislature as this bill), who qualifies for optional membership pursuant to this amendatory act may terminate membership in the retirement system by making application in writing to the board of trustees of the retirement system within 90 days after the effective date, and the member shall, upon request, receive a refund of the member's accumulated deductions from the date of reenrollment as a result of employment as a part-time school crossing guard. Such a refund shall serve as a waiver of all benefits payable for that service to the employee, the employee's dependent or dependents, or any of the employee's beneficiaries under the retirement system.
3. This act shall take effect immediately.
STATEMENT
Many municipalities have difficulty securing part-time school crossing guards because of the fact that a number of applicants are senior citizens who have retired from the Public Employees' Retirement System (PERS). These retirees would lose their monthly retirement allowance if they took these positions because they would be required to reenroll in the retirement system if they earned more than $1,500 annually.
This bill provides for optional membership in the retirement system for a PERS retiree who is employed as a school crossing guard on a part-time basis and is 65 years of age or more at the time of employment. Such retirees shall continue to receive any retirement allowance or other benefits which they received prior to employment if they elect not to reenroll in the retirement system. If such a retiree elects to reenroll, the employee shall apply for reenrollment as a member of the retirement system no later than 90 days after the commencement of employment. Once such an employee is reenrolled, the employee shall not have the option to terminate membership other than as provided for other members of the retirement system.
Makes membership in PERS optional for certain retirees employed as part-time school crossing guards.