ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1267

STATE OF NEW JERSEY

DATED: MARCH 4, 1996

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 1267.

      Assembly Bill No. 1267 revises the amount of the lump sum death benefit payable to the surviving beneficiary of a retired member of the Judicial Retirement System (JRS) who dies while engaged in temporary service within the judicial system to which the retirant has been recalled by the Supreme Court.

      Under present law, the amount of the lump sum death benefit payable upon the death of a retired JRS member (other than certain disability retirants) is equal to one-fourth of the retired member's final salary. Under this bill, if the death occurs while the retirant is engaged in temporary service as a recalled justice or judge, the amount of the benefit would be increased to one and one-half times that final salary, the same as the amount payable upon the death of a JRS member who dies in active service.

FISCAL IMPACT:

      The Office of Legislative Services notes that according to the most recent actuarial valuation of the retirement system, the average salary for members is $101,114. The cost for providing the benefit annually would be $25,279. The cost under the bill would be $151,671 or $126,392 more per applicable retiree.