ASSEMBLY, No. 2270

STATE OF NEW JERSEY

INTRODUCED JULY 18, 1996

By Assemblymen MORAN, Holzapfel and Wolfe

An Act concerning the accidental death benefit payable to beneficiaries of certain members of the State Police Retirement System, amending P.L.1965, c.89, and P.L.1991, c.380.

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

    1. Section 14 of P.L.1965, c.89 (C.53:5A-14) is amended to read as follows:

    14. a. Upon the death of a member in active service as a result of an accident met in the actual performance of duty at some definite time and place, and such death was not the result of the member's willful negligence, an accidental death benefit shall be payable if a report of the accident is filed in the office of the Division of State Police within 60 days next following the accident, but the board of trustees may waive such time limit, for a reasonable period, if in the judgment of the board the circumstances warrant such action. No such application shall be valid or acted upon unless it is filed in the office of the retirement system within 5 years of the date of such death.

    b. Upon the receipt of proper proofs of the death of a member on account of which an accidental death benefit is payable, there shall be paid to the surviving spouse a pension of 70% of final compensation for the use of that spouse and children of the deceased, to continue for as long as the person qualifies as a "surviving spouse" for the purposes of this act; if there is no surviving spouse or in case the spouse dies or remarries, 20% of final compensation will be payable to one surviving child, 35% of final compensation to two surviving children in equal shares and if there be three or more children, 50% of final compensation will be payable to such children in equal shares.

    If there is no surviving spouse or child, 25% of final compensation will be payable to one surviving parent or 40% of final compensation will be payable to two surviving parents in equal shares.

    In the event of accidental death occurring in the first year of creditable service, the benefits, payable pursuant to this subsection, shall be computed at the annual rate of compensation.

    In the event of accidental death occurring within one year after a member shall have assumed a position under a promotional appointment, or within 90 days after approval of such an appointment of the member but prior to the date on which that appointment was to have become effective, the benefit payable to a beneficiary under this subsection shall be computed at the annual rate of compensation applicable, as of the date on which the appointment did or would have become effective, to the position to which the promotional appointment was made, if such computation would result in a higher benefit to that beneficiary.

    c. If there is no surviving spouse, child or parent, there shall be paid to any other beneficiary of the deceased member, his aggregate contributions at the time of death.

    d. In no case shall the death benefits provided in subsection b. be less than that provided under subsection c.

    e. In addition to the foregoing benefits payable under subsection a. or b., there shall also be paid in one sum to the member's beneficiary, an amount equal to 3 1/2 times final compensation.

    In the event of accidental death occurring within one year after a member shall have assumed a position under a promotional appointment, or within 90 days after approval of such an appointment of the member but prior to the date on which that appointment was to have become effective, the benefit payable to a beneficiary under this subsection shall be computed at the annual rate of compensation applicable, as of the date on which the appointment did or would have become effective, to the position to which the promotional appointment was made, if such computation would result in a higher benefit to that beneficiary.

    f. (Deleted by amendment.)

    g. (Deleted by amendment.)

    h. In addition to the foregoing benefits, the State shall pay to the member's employer-sponsored health insurance program all health insurance premiums for the coverage of the member's surviving spouse and surviving children.

(cf: P.L.1991, c.380, s.1)

    2. Section 2 of P.L.1991, c.380 (C.43:3B-8.3) is amended to read as follows:

    2. The provisions of section 7 of P.L.1969, c.169 (C.43:3B-8) shall not apply to section 14 of P.L.1965, c.89 (C.53:5A-14), as amended by section 1 of [this amendatory and supplementary act] P.L.1991, c.380 and section of P.L. , c. (C. )(now pending before the Legislature as this bill), and the annual cost of living adjustment received by surviving spouses under P.L.1958, c.143 (C.43:3B-1 et seq.), as amended and supplemented by P.L.1969, c.169, shall be calculated as of the date of death of the member of the retirement system.

(cf: P.L.1991, c.380, s.2)

    3. This act shall take effect immediately and shall be applicable to any accidental death benefit payable with respect to the death of a member of the retirement system occurring on or after January 1, 1996, except that no adjustment shall be made with respect to the amount of any payment of pension, under subsection b. of section 14 of P.L.1965, c.89 (C.53:5A-14) as amended by this act, that is made prior to the effective date of this act.

STATEMENT

    This bill provides for an increase, in certain cases, in the death benefit payable under the State Police Retirement System (SPRS) when a member of the system is killed in the line of duty.

    Under current law, the accidental death benefit payable upon the death of a member of SPRS "as a result of an accident met in the actual performance of duty" consists of (1) a survivor's pension payable to the surviving spouse, child(ren), or parent(s) of the deceased member, and (2) a lump sum payment to the member's designated beneficiary in an amount equal to 3½ times the member's compensation during the final year of creditable service.

    The bill addresses the situation in which an SPRS member dies in the line of duty shortly after receiving a promotion. Under the bill, if the death occurs within one year after the member's promotion has become effective, or within 90 days after approval of a promotional appointment but prior to the effective date of the appointment, the survivor's pension and lump sum benefit would be computed at the annual rate of compensation applicable, as of the date on which the appointment did or would have become effective, to the position to which the promotional appointment was made, provided such a computation would result in a higher benefit to the beneficiary.

    The bill is to apply retroactively to any accidental death benefit payable with respect to the death of a member of the retirement system occurring on or after January 1, 1996, except that such retroactivity would not affect payments of widow or widower's pension made prior to the date on which the bill takes effect as law.

Revises computation of accidental death benefit payable to beneficiaries of certain members of SPRS killed in line of duty.