ASSEMBLY STATE GOVERNMENT COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 1699

 

with committee amendments

 

STATE OF NEW JERSEY

 

DATED: MAY 1, 1997

 

 

      The Assembly State Government Committee reports favorably and with committee amendments Assembly Bill No. 1699.

      This bill amends the law governing the Employees' Retirement System of the City of Newark (Newark ERS), subject to passage by the governing body of that city of an ordinance adopting the provisions of the legislation. The bill:

      (1) Removes the limit on the amount of annual salary ($16,000) upon which a beneficiary's pension is calculated; and

      (2) Deletes, in conjunction with removal of the cap on pensionable salary, various specific dollar caps on other retirement and survivor benefits.

 

Pension and Health Benefits Review Commission action

 

      At the December 16, 1996 meeting of the Pension and Health Benefits Review Commission, the commission recommended that the Legislature enact A-1699 "in order to remove low limits on pensions for long-time employees and to support home rule regarding a local pension system; provided that the Newark City Council adopts a resolution in support of the bill."

 

COMMITTEE AMENDMENTS

 

      The committee adopted amendments to this legislation to (1) eliminate an increase, included in the bill as originally introduced, in the amount of the minimum service retirement benefit under the Newark ERS from 50% to 62% of salary, and (2) require that, to become effective, the provisions of the legislation would have to be adopted by ordinance of the governing body of the City of Newark.