ASSEMBLY, No. 2689

 

STATE OF NEW JERSEY

 

INTRODUCED FEBRUARY 3, 1997

 

 

By Assemblyman BODINE

 

 

An Act concerning notice to members of the Public Employees' Retirement System of New Jersey and the Teachers' Pension and Annuity Fund of the impending expiration of their membership therein and amending P.L.1954, c.84 and N.J.S.18A:66-7.

 

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

 

    1. Section 7 of P.L.1954, c.84 (C.43:15A-7) is amended to read as follows:

    7. There is hereby established the Public Employees' Retirement System of New Jersey in the Division of Pensions of the Department of the Treasury. The membership of the retirement system shall include:

    a. The members of the former "State Employees' Retirement System of New Jersey" enrolled as such as of December 30, 1954, who shall not have claimed for refund their accumulated deductions in said system as provided in this section;

    b. Any person becoming an employee of the State or other employer after January 2, 1955 and every veteran, other than those whose appointments are seasonal, becoming an employee of the State or other employer after such date, including a temporary employee with at least one year's continuous service; and

    c. Every employee veteran in the employ of the State or other employer on January 2, 1955, who is not a member of any retirement system supported wholly or partly by the State.

    d. Membership in the retirement system shall be optional for elected officials other than veterans, and for school crossing guards, who having become eligible for benefits under other pension systems are so employed on a part-time basis. Any such part-time school crossing guard who is eligible for benefits under any other pension system and who was hired as a part-time school crossing guard prior to March 4, 1976, may at any time terminate his membership in the retirement system by making an application in writing to the board of trustees of the retirement system. Upon receiving such application, the board of trustees shall terminate his enrollment in the system and direct the employer to cease accepting contributions from the member or deducting from the compensation paid to the member. State employees who become members of any other retirement system supported wholly or partly by the State as a condition of employment shall not be eligible for membership in this retirement system. Notwithstanding any other law to the contrary, all other persons accepting employment in the service of the State shall be required to enroll in the retirement system as a condition of their employment, regardless of age. No person in employment, office or position, for which the annual salary or remuneration is fixed at less than $1,500.00, shall be eligible to become a member of the retirement system.

    e. Membership of any person in the retirement system shall cease if [he], except as otherwise provided by law, the person shall discontinue [his] service for more than two consecutive years. The retirement system shall send written notice in care of the last employer of a member at least 60 days in advance of the date on which the person's membership shall expire as provided in this subsection. The notice shall include a summary explanation of the provisions of this act, P.L.1954, c.84 (C.43:15A-1 et seq.), and applicable rules and regulations promulgated thereunder concerning disability retirement under the retirement system and a statement that no application for such disability retirement may be received by the retirement system from a person whose membership in the retirement system has expired.

    f. The accumulated deductions of the members of the former "State Employees' Retirement System" which have been set aside in a trust fund designated as Fund A as provided in section 5 of this act and which have not been claimed for refund prior to February 1, 1955 shall be transferred from said Fund A to the Annuity Savings Fund of the Retirement System, provided for in section 25 of this act. Each member whose accumulated deductions are so transferred shall receive the same prior service credit, pension credit, and membership credit in the retirement system as he previously had in the former "State Employees' Retirement System" and shall have such accumulated deductions credited to his individual account in the Annuity Savings Fund. Any outstanding obligations of such member shall be continued.

    g. Any school crossing guard electing to terminate his membership in the retirement system pursuant to subsection d. of this section shall, upon his request, receive a refund of his accumulated deductions as of the date of his appointment to the position of school crossing guard. Such refund of contributions shall serve as a waiver of all benefits payable to the employee, to his dependent or dependents, or to any of his beneficiaries under the retirement system.


    h. A temporary employee who is employed under the federal Job Training Partnership Act, Pub.L. 97-300 (29 U.S.C. s. 1501) shall not be eligible for membership in the system. Membership for temporary employees employed under the federal Job Training Partnership Act, Pub.L.97-300 (29 U.S.C. s. 1501) who are in the system on the effective date of this 1986 amendatory act shall be terminated, and affected employees shall receive a refund of their accumulated deductions as of the date of commencement of employment in a federal Job Training Partnership Act program. Such refund of contributions shall serve as a waiver of all benefits payable to the employee, to his dependent or dependents, or to any of his beneficiaries under the retirement system.

(cf: P.L.1986, c.139, s.1)

 

    2. N.J.S.18A:66-7 is amended to read as follows:

    18A:66-7. Membership of any person shall cease:

    (a) if, except as provided in [section] R.S. 18A:66-8, he shall discontinue his service for more than two consecutive years;

    (b) upon the withdrawal by a member of his accumulated deductions as provided in this article;

    (c) upon resignation and election to receive, in lieu of the return of his accumulated deductions, the benefits provided in [section] R.S. 18A:66-36 and R.S. 18A:66-37;

    (d) upon retirement;

    (e) at death;

but not otherwise except as provided in this article.

    The pension fund shall send written notice in care of the last employer of a member at least 60 days in advance of the date on which his inactive membership shall expire as provided in subsection (a) of this section. The notice shall include a summary explanation of the provisions of this article and applicable rules and regulations promulgated thereunder concerning disability retirement under the retirement system and a statement that no application for such disability retirement may be received by the retirement system from a person whose membership in the retirement system has expired.

(cf: N.J.S.18A:66-7)

 

    3. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill requires the Public Employees' Retirement System (PERS) to send a member at least 60 days' advance notice in writing, in care of the member's last employer, that the person's membership in PERS is to expire after discontinuance of service for more than two consecutive years. A similar notice requirement is already applicable under the Teachers' Pension and Annuity Fund (TPAF).

    The bill further requires, under both PERS and TPAF, that the notice shall include a summary explanation of the provisions of the appropriate statute, and applicable rules and regulations promulgated thereunder, concerning disability retirement under the retirement system or pension fund and a statement that no application for such disability retirement may be received by the system or fund from a person whose membership therein has expired.

 

 

                             

Requires PERS and TPAF to notify persons whose membership is to expire for discontinuance from service that no disability retirement application may be received after such expiration of membership.