ASSEMBLY, No. 1605

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 29, 1996

By Assemblyman KELLY

An Act concerning pension credit for certain service rendered by members of the Public Employees’ Retirement System and supplementing P.L.1954, c.84 (C.43:15A-1 et seq.).

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. a. Any person who serves, while on an approved leave of absence from regular duties in a position covered by the retirement system, as an officer of a local, county or State labor organization which represents, or is affiliated with an organization which represents, teachers as defined in N.J.S.18A:66-2, shall receive credit in the retirement system for the service. The person receiving the credit shall be liable, with respect to the service to be credited, for payment to the retirement system of the contributions that would have been required under sections 24 and 25 of P.L.1954, c.84 (C.43:15A-24 and 43:15A-25) if that service had been rendered as regular service in the position to the employer granting the leave of absence. The contributions shall be based upon the compensation that would have been received by the person under the locally established salary guide had that person remained in regular service with the employer.

    b. Any person who, prior to the effective date of P.L. , c. (C.           ) (now pending before the Legislature as this bill), has rendered service as defined in subsection a. and who has not received credit in the retirement system for that service may elect, within one year after that effective date, to purchase credit for the service. The cost of the purchase shall be computed by applying the factor, supplied by the actuary as being applicable to the member's age at the time of the purchase and necessary to provide for the full cost, as considered in developing the purchase factors for military service, attributable to the purchased credit, to the member's salary at that time for a member in regular service with the employer or the salary the member would be receiving at that time on the locally established salary guide for a member serving as an officer of a local, county or State labor organization. All other terms of the purchase and the credit granted

shall be as stipulated for the purchase of previous membership service by section 8 of P.L.1954, c.84 (C.43:15A-8).

    2. This act shall take effect immediately.

STATEMENT

    This bill provides that any person who serves, while on an approved leave of absence from regular duties as an employee of a public employer in a position covered by the Public Employees’ Retirement System (PERS), as an officer of a local, county, State or national labor organization which represents teachers, or is affiliated with an organization which represents teachers, shall receive credit in the PERS for the service. The person receiving the credit is to be liable, with respect to the service to be credited, for payment to the retirement system of both the employer’s and the employee’s contributions that would have been required if the service had been rendered as regular service to the employer granting the leave of absence. The contributions are to be based on the compensation that would have been received by the person under the locally established salary guide had the person remained in regular service with the employer.

    The bill also permits a person who served as an officer of a teachers’ labor organization prior to the date on which the bill takes effect as law to purchase PERS credit for the service within one year after that effective date.

Permits members of PERS to receive credit for service as officers of labor organizations that represent teachers.