ASSEMBLY, No. 838
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblyman ARNONE
An Act providing certain retirement benefits to certain disabled veteran State employee members of the Public Employees' Retirement System of New Jersey.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. For the purposes of this act:
a. "State employee" means a full-time employee, eligible to participate in the New Jersey State Health Benefits Program, of the State of New Jersey, or Rutgers, The State University, the New Jersey Institute of Technology, the University of Medicine and Dentistry of New Jersey, or a State college. It does not include an employee of an authority, board, commission, corporation, or other agency or instrumentality, other than Rutgers, The State University, authorized to participate in PERS under section 73 of P.L.1954, c.84 (C.43:15A-73) or P.L.1990, c.25 (C.43:15A-73.2 et seq.), or a public agency or organization as defined in section 71 of P.L.1954, c.84 (C.43:15A-71).
b. "Disabled veteran" means any veteran who is eligible to be compensated for a service-connected disability from war service by the United States Veterans Administration or who receives or is entitled to receive equivalent compensation for a service-connected disability which arises out of military or naval service in any war or conflict described in section 6 of P.L.1954, c.84 (C.43:15A-6) during the periods specified.
2. A State employee who:
a. is a disabled veteran, is at least 55 years of age and has at least 25 years of service credit under the Public Employees' Retirement System (PERS) for which contributions were made by the employee under the program before the effective date of retirement;
b. files an application to retire on or before December 1, 1995; and
c. retires under the retirement system on or after June 1, 1995, but not later than January 1, 1996, shall receive a retirement allowance of one-half of the compensation for which contributions are made for the year of creditable service immediately preceding retirement or for any year of membership providing the largest possible benefit to the member or the member's beneficiary.
3. The actuaries for PERS shall determine the liabilities of the retirement system for the additional pension benefits to State employees provided under this act in accordance with the tables of actuarial assumptions adopted by the board of trustees of the retirement system. These liabilities shall be added to the unfunded accrued liabilities 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 24 of P.L.1954, c.84 (C.43:15A-24). The State shall pay the cost of the actuarial work to determine the additional liabilities of the retirement system for the benefits under this act.
4. A State employee who receives a benefit under this act shall forfeit all tenure rights.
5. A State employee retiring under PERS 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 retiree dies before the outstanding balance of the loan and interest is repaid, the remaining amount shall be repaid as provided in section 2 of P.L.1981, c.55 (C.43:15A-34.1).
6. The Director of the Division of Pensions and Benefits may promulgate rules and regulations which the director deems necessary for the effective implementation of this act.
7. This act shall take effect immediately.
STATEMENT
This bill provides additional retirement benefits for certain disabled veteran State employees who retire under the Public Employees' Retirement System (PERS) between June 1, 1995 and January 1, 1996.
The bill provides that a State employee who is a disabled veteran, is at least 55 years of age and has at least 25 years of PERS service credit shall receive a retirement allowance of one-half of the compensation for the year preceding retirement or for any year providing the largest possible benefit. The employee must file an application to retire on or before December 1, 1995, and retire on or after June 1, 1995, but not later than January 1, 1996.
"Disabled veteran" means any veteran who is eligible to be compensated for a service-connected disability from war service by the United States Veterans Administration or who receives or is entitled to receive equivalent compensation for a service-connected disability which arises out of military or naval service in any war or conflict described in N.J.S.A.43:15A-6 during the periods specified.
The State employees eligible for the benefits under this bill are already eligible to retire under PERS. The purpose of the bill is to provide an incentive for State employees to retire and avoid possible layoff. Currently, a veteran member of PERS may receive a retirement allowance of one-half of the compensation received during the last year of employment upon attaining 62 years of age with at least 20 years of service.
Provides additional retirement benefits for certain disabled veteran employee members of PERS who retire between June 1, 1995 and January 1, 1996.