ASSEMBLY, No. 2737

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 27, 1997

By Assemblymen DORIA and JONES

An Act requiring an actuarial analysis of the issuance of bonds to refinance the State's pension obligations and making an appropriation.

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

    1. The Legislature finds and declares that:

    a. the Governor has proposed issuing approximately $3.4 billion worth of bonds to refinance the State's pension obligations;

    b. the complexity and novelty of this proposed borrowing are such that the proposal requires the most serious evaluation by the Legislature; and

    c. the Legislature must have both the information and the time to evaluate the merits of the Governor's proposal.

    2. Within 45 days after the effective date of this act, the State Auditor shall, through competitive bidding, engage the services of an actuary to perform a current actuarial analysis of the State-administered retirement systems in order to assess the feasibility and desirability of the Governor's proposal to issue bonds to refinance the State's pension obligations and to assess whether implementing the proposal will result in a savings to the State. Within 90 days after the effective date of this act, the actuary shall deliver a completed actuarial analysis to the State Auditor.

    3. Neither the Legislature nor any standing reference committee of the Legislature shall consider any legislation implementing or effectuating the Governor's proposal to issue bonds to refinance the State's pension obligations until at least 10 days after the delivery of the completed actuarial analysis to the State Auditor, during which time the State Auditor shall distribute copies of the analysis to the members of the Legislature.

    4. There is appropriated $50,000 from the General Fund to the Office of the State Auditor to engage the services of an actuary.

    5. This act shall take effect immediately.

STATEMENT

    The Governor has proposed issuing approximately $3.4 billion worth of bonds to refinance the State's pension obligations. The complexity and novelty of this proposed borrowing are such that the proposal requires the most serious evaluation by the Legislature. It is crucial that the Legislature have both the information and the time to evaluate the merits of the Governor's proposal.

    This bill provides that within 45 days after the effective date of this act, the State Auditor shall, through competitive bidding, engage the services of an actuary to perform a current actuarial analysis of the State-administered retirement systems in order to assess the feasibility and desirability of the Governor's proposal to issue bonds to refinance the State's pension obligations and to assess whether implementing the proposal will result in a savings to the State. Within 90 days after the effective date of this act, the actuary shall deliver a completed actuarial analysis to the State Auditor. Neither the Legislature nor any standing reference committee of the Legislature shall consider any legislation implementing or effectuating the Governor's proposal to issue bonds to refinance the State's pension obligations until at least 10 days after the delivery of the completed actuarial analysis to the State Auditor, during which time the State Auditor shall distribute copies of the analysis to the members of the Legislature.

    The bill appropriates $50,000 to the Office of the State Auditor to engage the services of an actuary.

Requires actuarial analysis of the Governor's pension obligation bond proposal; appropriates $50,000.