ASSEMBLY STATE GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2591

STATE OF NEW JERSEY

DATED: JANUARY 23, 1997

      The Assembly State Government Committee reports favorably Assembly Bill No. 2591.

      This bill provides that a member of the Police and Firemen's Retirement System (PFRS) who had established service credit in a municipal or county retirement system or pension fund prior to enrollment in PFRS and who is ineligible to transfer the service credit to PFRS may purchase credit in the latter system for all of that prior service with the municipality or county. To be eligible to make the purchase, the member could not have a vested right to retirement benefits in the municipal or county retirement system or pension fund. The member would be required to pay the full cost attributable to the increased benefits to be derived from the purchased credit but would not be liable for any costs associated with the financing of pension adjustment benefits and health care benefits for retirees.

      This legislation is identical to Senate, No. 507 of 1996. At its meeting on May 17, 1996, the Pension and Health Benefits Review Commission adopted a recommendation "that the Legislature enact S-507 because it brings the PFRS purchase provisions into conformity with PERS and TPAF."