ASSEMBLY, No. 791
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblywoman FARRAGHER and Assemblyman ARNONE
An Act concerning retirement benefits for certain members of the State Police Retirement System.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. A member of the State Police Retirement System (SPRS) who:
a. is 47 or more years of age and has 20 or more years of creditable service as a full-time commissioned officer, noncommissioned officer or trooper of the Division of State Police, including creditable service transferred to the retirement system for a member appointed to the State Police under section 3 of P.L.1983, c.403 (C.39:2-9.3), before the effective date of retirement;
b. files an application to retire on or after December 1, 1993 and on or before December 1, 1994; and
c. retires under the retirement system on or after January 1, 1994 but not later than January 1, 1995 shall, upon retirement, receive additional service credit as a member of the State Police under SPRS for each full month that the member's age on the date of retirement is less than age 55, up to 60 months, with a total of not more than 30 years of service credit under SPRS.
A member who retires under this section with 25 or more years of service credit shall be entitled to the retirement allowance and death benefits provided under section 27 of P.L.1965, c.89 (C.53:5A-27) and to the health benefits coverage during retirement under subsection c. of section 8 of P.L.1961, c.49 (C.52:14-17.32). A member who retires under this section with fewer than 25 years of service credit shall be entitled to the retirement allowance provided under subsection b. of section 8 of P.L.1965, c.89 (C.53:5A-8), plus 3% of final compensation multiplied by the number of years of total service over 20, and the death benefits provided under subsection g. of that section 8, and to the continued health benefits coverage during retirement which the member would be entitled to, upon attaining age 55, pursuant to subsection d. of section 8 of P.L.1965, c.89 (C.53:5A-8). The State shall pay the premium or periodic charges for benefits provided under this section to the retired member and the member's dependents, but not including survivors, in the same manner as provided for payment by the State of such premium or charges for retired State employees under subsection c. of section 8 of P.L.1961, c.49 (C.52:14-17.32).
2. The actuary for SPRS shall determine the liability of the retirement system for the additional service credit or pensions provided under this act and for the early retirement of employees in accordance with the tables of actuarial assumptions adopted by the board of trustees of the retirement system. This liability shall be added to the unfunded accrued liability of the State under the retirement system and shall be paid in the same manner and over the remaining time periods provided for the State's unfunded accrued liability under section 34 of P.L.1965, c.89 (C.53:5A-34). The State shall pay the cost of the actuarial work to determine the additional liability of the retirement system for the benefits under this act.
3. A retirant from SPRS who receives a benefit under this act shall forfeit all tenure rights.
4. Where the needs of the Division of State Police in the Department of Law and Public Safety require the services of an employee who elects to retire and receive a benefit under this act, the Superintendent, with the approval of the Attorney General and with the consent of the employee, may delay the effective retirement date of the employee until the first day of any calendar month after January 1, 1995, but not later than January 1, 1996. A delay in the effective retirement date of an employee shall not extend the dates set forth in section 1 to qualify for benefits under this act.
For a member of SPRS whose effective retirement date is delayed under this section and who dies before the retirement becomes effective, the retirement shall be effective as of the first day of the month after the date of death of the member if the member's beneficiary so requests in writing to the board of trustess of the retirement system.
5. A State employee retiring under SPRS with a benefit under this act who has not repaid the full amount of a loan from the retirement system by the effective date of retirement may repay the loan through deductions from the member's retirement benefit payments in the same monthly amount which was deducted from the member's compensation immediately preceding retirement until the balance of the amount borrowed together with interest at the statutory rate is repaid. If the retirant dies before the outstanding balance of the loan and interest thereon is repaid, the remaining amount shall be repaid from the proceeds of any other benefits payable on the account of the retirant either in the form of monthly payments due to the retirant's beneficiaries or in the form of lump sum payments payable for pension or group life insurance.
6. This act shall take effect immediately.
STATEMENT
This bill provides additional retirement benefits for those members of the State Police Retirement System (SPRS) who: a. are 47 or more years of age and have 20 or more years of creditable service as a full-time commissioned officer, noncommissioned officer or trooper of the Division of State Police, including creditable service transferred to the retirement system for a member appointed to the State Police under section 3 of P.L.1983, c.403 (C.39:2-9.3), before the effective date of retirement; b. file an application to retire on or after December 1, 1993 and on or before December 1, 1994; and c. retire on or after January 1, 1994 but not later than January 1, 1995. The benefits are additional service credit as a member of the State Police under SPRS for each full month that the member's age on the date of retirement is less than age 55, up to 60 months, with a total of not more than 30 years of service credit under SPRS, and State-paid health benefits coverage during retirement.
A member who retires under this early retirement program with 25 or more years of service credit shall be entitled to the retirement allowance provided to 25-year retirees (65% of final compensation plus 1% of final compensation for each year over 25 up to 30) and to the paid health benefits coverage for which 25-year State employees are eligible, and a member who retires with fewer than 25 years of service credit shall be entitled to the retirement allowance provided to 20-year retirees (50% of final compensation) plus 3% of final compensation for each year of total service over 20 and to health benefits coverage during retirement.
An SPRS member retiring under this bill who has an outstanding pension loan would have the option of repaying the balance plus interest by deductions from retirement benefit payments in the same monthly amount that was deducted from the employee's compensation preceding retirement.
The cost of the benefits for SPRS retirants under the legislation will be added to the accrued liability of the retirement system and funded through increased annual State contributions to the retirement system during the remaining period, roughly 20 years, over which this liability is currently being amortized. The cost of the actuarial studies to determine the additional liability shall be paid by the State.
Where the needs of the Division of State Police require the services of an employee who elects to receive a benefit under the act, the Superintendent of the State Police, with the approval of the Attorney General and with the consent of the employee, may delay the effective retirement date of the employee for up to one year, but not later than January 1, 1996. The authorization for delays in effective retirement dates does not extend the dates for qualification for benefits under the act.
The employees eligible for the additional benefits upon early retirement under this act are all eligible to retire under the State Police Retirement System.
Provides additional retirement benefits for certain State Police Retirement System members who retire between January 1, 1994 and January 1, 1995.