ASSEMBLY, No. 2709

 

STATE OF NEW JERSEY

 

INTRODUCED FEBRUARY 3, 1997

 

 

By Assemblyman JONES

 

 

An Act concerning accidental disability retirement in the Police and Firemen's Retirement System, amending and supplementing P.L.1944, c.255, and supplementing P.L.1958, c.143 (C.43:3B-1 et seq.).

 

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

 

    1. Section 7 of P.L.1944, c.255 (C.43:16A-7) is amended to read as follows:

    7. (1) Upon the written application by a member in service, by one acting in his behalf or by his employer any member may be retired on an accidental disability retirement allowance; provided, that the medical board, after a medical examination of such member, shall certify that the member is permanently and totally disabled as a direct result of a traumatic event occurring during and as a result of the performance of his regular or assigned duties and that such disability was not the result of the member's willful negligence and that such member is mentally or physically incapacitated for the performance of his usual duty and of any other available duty in the department which his employer is willing to assign to him. The application to accomplish such retirement must be filed within five years of the original traumatic event, but the board of trustees may consider an application filed after the five-year period if it can be factually demonstrated to the satisfaction of the board of trustees that the disability is due to the accident and the filing was not accomplished within the five-year period due to a delayed manifestation of the disability or to other circumstances beyond the control of the member.

    (2) Upon retirement for accidental disability, a member shall receive an accidental disability retirement allowance which shall consist of:

    (a) An annuity which shall be the actuarial equivalent of his aggregate contributions and

    (b) A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of 2/3 of the member's actual annual compensation for which contributions were being made at the time of the occurrence of the accident or at the time of the member's retirement, whichever provides the largest possible benefit to the member.

    (3) Upon receipt of proper proofs of the death of a member who has retired on accidental disability retirement allowance, there shall be paid to such member's beneficiary, an amount equal to 3 1/2 times the compensation upon which contributions by the member to the annuity savings fund were based in the last year of creditable service; provided, however, that if such death shall occur after the member shall have attained 55 years of age the amount payable shall equal 1/2 of such compensation instead of 3 1/2 times such compensation.

    (4) Permanent and total disability resulting from a cardiovascular, pulmonary or musculo-skeletal condition which was not a direct result of a traumatic event occurring in the performance of duty shall be deemed an ordinary disability.

(cf: P.L.1989, c.204, s.3)

 

    2. (New section) Any increased pension benefits payable under this act, P.L. , c. (C. ) (now pending before the Legislature as this bill), shall apply to the benefits received by any member who retired on an accidental disability retirement on or after April 1, 1991 and shall apply only to pension benefits payable on or after the effective date of this act.

 

    3. (New section) The provisions of section 7 of P.L.1969, c.169 (C.43:3B-8) shall not apply to section 7 of P.L.1944, c.255 (C.43:16A-7), as amended by this act, 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 retirement of the member of the retirement system.

 

    4. This act shall take effect immediately.

 

 

STATEMENT

 

    At present, a member of the Police and Firemen's Retirement System (PFRS) who retires on accidental disability receives a retirement allowance of 2/3 of the member's actual annual compensation for which contributions were being made at the time of the occurrence of the accident. This bill provides that the member may instead receive a retirement allowance of 2/3 of the member's actual annual compensation for which contributions were being made at the time of the member's retirement, whichever provides the largest possible benefit to the member.

    Any increased pension benefits payable under this act shall apply to the benefits received by any member who retired on an accidental disability retirement on or after April 1, 1991 and shall apply only to pension benefits payable on or after the effective date of this act. The bill also provides that retirees will maintain their pension adjustment benefits.

 

 

                             

 

Establishes alternate basis for calculation of accidental disability retirement allowance.