ASSEMBLY STATE GOVERNMENT COMMITTEE
ASSEMBLY, No. 2592
STATE OF NEW JERSEY
DATED: JANUARY 23, 1997
The Assembly State Government Committee reports favorably Assembly Bill No. 2592.
This bill changes the formula used in the "Public Employees' Retirement System Act" for calculating the noncontributory (i.e., employer-paid) death benefit payable on account of a member's death after retirement.
Under current law, the retirant's noncontributory death benefit is based upon compensation received by the retirant in the last year of creditable service. The bill provides that the benefit would be based upon either that compensation or the highest compensation received in any fiscal year of membership, whichever is greater.
This bill is identical to Senate, No. 1301, now before the Senate Budget and Appropriations Committee. At its October 11, 1996 meeting, the Pension and Health Benefits Review Commission adopted a recommendation "that the Legislature enact S-1301 in order to ensure that retiree life insurance benefits are based on the highest salary."