ASSEMBLY STATE GOVERNMENT COMMITTEE
ASSEMBLY, No. 2124
STATE OF NEW JERSEY
DATED: DECEMBER 16, 1996
The Assembly State Government Committee reports favorably Assembly, No. 2124.
This bill permits a person who, when the bill takes effect as law, is (1) receiving from a public retirement system established by P.L.1954, c.218 a pension capped by a limit on the amount of the person's salary during active service deemed pensionable for benefit purposes, and (2) employed in a position covered by the Public Employees’ Retirement System (PERS), to enroll in PERS notwithstanding the provisions of P.L.1968, c.23 that prohibit such enrollment. The person would have to apply for such enrollment within 180 days of the date of the bill's enactment, repay to the former system all pension payments received, and waive all rights and benefits under the former system. Employer and employee contributions for the member’s service under the former system, with interest at a rate of 6%, are to be remitted to PERS.
Credit for service established by the person under the former system is to be established in PERS.If the amounts that the former system remits to PERS are insufficient to provide for the full cost of establishing that credit in PERS, the employee is to be liable for the amount of the deficiency. The employee could purchase credit for service rendered in the PERS-covered position of employment since the date of appointment thereto under the same terms as would be applicable to the purchase of previous PERS service.