ASSEMBLY, No. 1607

 

STATE OF NEW JERSEY

 

INTRODUCED FEBRUARY 29, 1996

 

 

By Assemblymen DORIA, GARCIA and Wisniewski

 

 

An Act providing for the purchase of credit in the Teachers' Pension and Annuity Fund for certain nonpublic school service and supplementing chapter 66 of Title 18A of the New Jersey Statutes.

 

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

 

    1. a. As used in this section, "nonpublic school" means an elementary or secondary school within the State, other than a public school, offering education for grades kindergarten through 12, or any combination of them, wherein any child may legally fulfill compulsory school attendance requirements and which complies with the requirements of Title VI of the "Civil Rights Act of 1964," Pub.L.88-352, (42 U.S.C.§2000d et seq.).

    b. A member may file a detailed statement of service as a teacher in a nonpublic school within this State rendered prior to becoming a member, for which the member desires credit, and of such other facts as the retirement system may require. The member may purchase credit for all or a portion of the service evidenced in the statement up to the nearest number of years and months, but not exceeding 10 years. No application shall be accepted for the purchase of credit for such service if, at the time of application, the member has a vested right to retirement benefits, based in whole or in part upon that service, in another retirement system, pension fund or annuity program to which the member's nonpublic school employer has contributed on behalf of the member.

    The member may purchase credit for the service by paying into the annuity savings fund the amount computed by applying the factor, supplied by the actuary as being applicable to the member's age at the time of the purchase, to the member's salary at that time, or to the highest annual compensation for service in this State for which contributions were made during any prior fiscal year of membership, whichever is greater. The purchase may be made in regular installments, equal to at least one-half the full normal contribution to the retirement system, over a maximum period of 10 years. Neither the State nor the employer of a member who applies to purchase credit for service in a nonpublic school within this State shall be liable for any payment to the retirement system on behalf of the member for the purchase of this credit.

    Notwithstanding any provision of this act to the contrary, a member shall not be liable for any costs associated with the financing of pension adjustment benefits and health care benefits for retirees when purchasing credit for service in a nonpublic school within this State.

    Any member electing to purchase the service who retires prior to completing payments as agreed with the retirement system will receive pro rata credit for service purchased prior to the date of retirement, but if the member so elects at the time of retirement, the member may make the additional lump sum payment required at that time to provide full credit.

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill permits a member of the Teachers' Pension and Annuity Fund (TPAF) to purchase credit in that fund, up to a maximum of 10 years, for previous teaching service rendered in a nonpublic school in New Jersey. The member would pay the full cost of the purchase.

 

 

                             

Permits purchase of TPAF credit for certain nonpublic school service.