ASSEMBLY STATE GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2709

STATE OF NEW JERSEY

DATED: NOVEMBER 17, 1997

      The Assembly State Government Committee reports favorably Assembly Bill No. 2709.

      This bill amends the law governing the Police and Firemen's Retirement System (PFRS) to provide an alternative basis for the computation of an accidental disability retirement allowance under that system.

      A PFRS member who retires for accidental disability receives a retirement allowance of ⅔ of the actual annual compensation upon which contributions were made. Present law specifies that the annual compensation rate to be used in computing this benefit is the rate applicable at the time of the accident. Under the bill, the member would be entitled to have the benefit computed instead on the basis of the annual compensation rate applicable at the time of the member's retirement, if that rate would provide a greater benefit to the member.

      Any benefit increase under the legislation is to apply to accidental disability beneficiaries who retired on or after April 1, 1991, but only to payments made on or after the date on which the bill takes effect as law. The bill provides that a retiree whose basic retirement benefit is increased under its provisions would be exempt from any offsetting reduction in the amount of the pension adjustment (cost of living) allowance for which the retiree is presently eligible.