ASSEMBLY, No. 1012
STATE OF NEW JERSEY
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblymen CONNORS and MORAN
An Act concerning the garnishment of public retirement system contributions of certain convicted public employees, amending various parts of the statutory law and supplementing Title 43 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. N.J.S.18A:66-51 is amended to read as follows:
18A:66-51. The right of a person to a pension, an annuity, or a retirement allowance, to the return of contributions, any benefit or right accrued or accruing to a person under the provisions of this article, and the moneys in the various funds created under this article[,]:
a. shall be exempt from any State or municipal tax and from levy and sale, garnishment, attachment or any other process arising out of any State of Federal court, except that there shall be transferred to the State or other public employer, upon the filing of an application therefor, from the accumulated deductions together with regular interest standing to the credit of a member's individual account in the annuity savings fund the amount of a money judgment obtained by the State or other public employer and rendered against that member if convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes, or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense. Such judgment may include the cost of prosecution as well as the amount of restitution ordered; and[,]
b. except as hereafter in this section and as in this article otherwise provided, shall be unassignable.
Nothing in this section shall prohibit any person insured under a group insurance policy, pursuant to an arrangement among the insured, the group policyholder and the insurer, from making to any person other than his employer, a gift assignment of the rights and benefits conferred on him by any provision of such policy or by law including specifically but not by way of limitation the right to exercise the conversion privilege and the right to name a beneficiary. Any such assignment, whether made before or after the effective date of this act, shall entitle the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy in accordance with the terms of the assignment.
(cf: P.L.1969, c.98, s.1)
2. Section 41 of P.L.1973, c.140 (C.43:6A-41) is amended to read as follows:
41. The right of a person to a pension, retirement allowance or any benefit or right accrued or accruing to a person under the provisions of this act and the moneys in the various funds created under this act[,]:
a. shall be exempt from any State or municipal tax and from levy and sale, garnishment, attachment or any other process arising out of any State or federal court, except that there shall be transferred to the State or other public employer, upon the filing of an application therefor, from the accumulated deductions together with regular interest standing to the credit of a member's individual account in the annuity savings fund the amount of a money judgment obtained by the State or other public employer and rendered against that member if convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes, or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense. Such judgment may include the cost of prosecution as well as the amount of restitution ordered; and[,]
b. except as hereinafter in this section and as in this act otherwise provided, shall be unassignable.
Nothing in this section shall prohibit any person insured under a group insurance policy, pursuant to an arrangement among the insured, the group policyholder and the insurer, from making to any person other than his employer, a gift assignment of the rights and benefits conferred on him by any provision of such policy or by law including specifically but not by way of limitation the right to exercise the conversion privilege and the right to name a beneficiary. Any such assignment, whether made before or after the effective date of this act, shall entitle the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy in accordance with the terms of the assignment.
(cf: P.L.1981, c.470, s.21)
3. Section 53 of P.L.1954, c.84 (C.43:15A-53) is amended to read as follows:
53. The right of a person to a pension, an annuity, or a retirement allowance, to the return of contributions, any benefit or right accrued or accruing to a person under the provisions of this act and the moneys in the various funds created under this act[,]:
a. shall be exempt from any State or municipal tax and from levy and sale, garnishment, attachment or any other process arising out of any State or Federal court, except that there shall be transferred to the State or other public employer, upon the filing of an application therefor, from the accumulated deductions together with regular interest standing to the credit of a member's individual account in the annuity savings fund the amount of a money judgment obtained by the State or other public employer and rendered against that member if convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes, or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense. Such judgment may include the cost of prosecution as well as the amount of restitution ordered; and[,]
b. except as in this section and in this act otherwise provided, shall be unassignable.
Nothing in this section shall prohibit any person insured under a group insurance policy, pursuant to an arrangement among the insured, the group policyholder and the insurer, from making to any person other than his employer, a gift assignment of the rights and benefits conferred on him by any provision of such policy or by law including specifically but not by way of limitation the right to exercise the conversion privilege and the right to name a beneficiary. Any such assignment, whether made before or after the effective date of this act, shall entitle the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy in accordance with the terms of the assignment.
(cf: P.L.1969, c.98, s.2)
4. Section 17 of P.L.1944, c.255 (C.43:16A-17) is amended to read as follows:
17. The right of a person to a pension, an annuity, or a retirement allowance, to the return of contributions, any benefit or right accrued or accruing to a person under the provisions of this act and the moneys in the various funds created under this act[,]:
a. shall be exempt from any State or municipal tax and from levy and sale, garnishment, attachment or any other process, except that there shall be transferred to the State or other public employer, upon the filing of an application therefor, from the accumulated deductions together with regular interest standing to the credit of a member's individual account in the annuity savings fund the amount of a money judgment obtained by the State or other public employer and rendered against that member if convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes, or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense. Such judgment may include the cost of prosecution as well as the amount of restitution ordered; and
b. except as hereinafter in this section and as in this act otherwise provided, shall be unassignable.
Nothing in this section shall prohibit any person insured under a group insurance policy, pursuant to an arrangement among the insured, the group policyholder and the insurer, from making to any person other than his employer, a gift assignment of the rights and benefits conferred on him by any provision of such policy or by law including specifically but not by way of limitation the right to exercise the conversion privilege and the right to name a beneficiary. Any such assignment, whether made before or after the effective date of this act, shall entitle the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy in accordance with the terms of the assignment.
(cf: P.L.1969, c.98, s.3)
5. Section 45 of P.L.1965, c.89 (C.53:5A-45) is amended to read as follows:
45. The right of a person to a pension, an annuity, or a retirement allowance, to the return of contributions, any benefit or right accrued or accruing to a person under the provisions of this act and the moneys in the various funds created under this act[,]:
a. shall be exempt from any State or municipal tax and from levy and sale, garnishment, attachment or any other process arising out of any State or Federal court, except that there shall be transferred to the State or other public employer, upon the filing of an application therefor, from the accumulated deductions together with regular interest standing to the credit of a member's individual account in the annuity savings fund the amount of a money judgment obtained by the State or other public employer and rendered against that member if convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes, or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense. Such judgment may include the cost of prosecution as well as the amount of restitution ordered; and[,]
b. except as hereinafter in this section and as in this act otherwise provided, shall be unassignable.
Nothing in this section shall prohibit any person insured under a group insurance policy, pursuant to an arrangement among the insured, the group policyholder and the insurer, from making to any person other than his employer, a gift assignment of the rights and benefits conferred on him by any provision of such policy or by law including specifically but not by way of limitation the right to exercise the conversion privilege and the right to name a beneficiary. Any such assignment, whether made before or after the effective date of this act, shall entitle the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy in accordance with the terms of the assignment.
(cf: P.L.1969, c.98, s.4)
6. (New section) If an employee of the State or other public employer has been convicted of an offense under the provisions of chapter 27 of Title 2C of the New Jersey Statutes, or any other offense involving a theft or misuse of public funds, or any attempt or conspiracy to commit any such offense and the amount of the accumulated deductions in an annuity savings fund account standing to the credit of the employee has been reduced by a transfer pursuant to N.J.S.18A:66-51, section 41 of P.L.1973, c.140 (C.43:6A-41), section 53 of P.L.1954, c.84 (C.43:15A-53), section 17 of P.L.1944, c.255 (C.43:16A-17), or section 45 of P.L.1965, c.89 (C.53:5A-45), the annuity portion of the employee's retirement allowance shall be based on the amount of accumulated deductions remaining after such a reduction together with regular interest and the pension amount of the employee's retirement allowance shall be calculated on the basis of all deductions ever credited to the employee in the annuity savings fund together with regular interest and shall not exceed the pension amount to which the employee would have been entitled had the employee's accumulated deductions not been so reduced.
7. This act shall take effect immediately.
Allows judgment for restitution of stolen public funds to be levied against convicted employee's pension contributions.