ASSEMBLY, No. 2762

 

STATE OF NEW JERSEY

 

INTRODUCED FEBRUARY 27, 1997

 

 

By Assemblymen AUGUSTINE and BAGGER

 

 

An Act providing for the payment of annuities to certain survivors of deceased retirants from the Police and Firemen's Retirement System of New Jersey and amending and supplementing P.L.1944, c.255.

 

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

 

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

    1. As used in this act:

    (1) "Retirement system" or "system" shall mean the Police and Firemen's Retirement System of New Jersey as defined in section 2 of this act.

    (2) (a) "Policeman" shall mean a permanent, full-time employee of a law enforcement unit as defined in section 2 of P.L.1961, c.56 (C.52:17B-67) or the State, other than an officer or trooper of the Division of State Police whose position is covered by the State Police Retirement System, whose primary duties include the investigation, apprehension or detention of persons suspected or convicted of violating the criminal laws of the State and who:

    (i) is authorized to carry a firearm while engaged in the actual performance of his official duties;

    (ii) has police powers;

    (iii) is required to complete successfully the training requirements prescribed by P.L.1961, c.56 (C.52:17B-66 et seq.) or comparable training requirements as determined by the board of trustees; and

    (iv) is subject to the physical and mental fitness requirements applicable to the position of municipal police officer established by an agency authorized to establish these requirements on a Statewide basis, or comparable physical and mental fitness requirements as determined by the board of trustees.

    The term shall also include an administrative or supervisory employee of a law enforcement unit or the State whose duties include general or direct supervision of employees engaged in investigation, apprehension or detention activities or training responsibility for these employees and a requirement for engagement in investigation, apprehension or detention activities if necessary, and who is authorized to carry a firearm while in the actual performance of his official duties and has police powers.

    (b) "Fireman" shall mean a permanent, full-time employee of a firefighting unit whose primary duties include the control and extinguishment of fires and who is subject to the training and physical and mental fitness requirements applicable to the position of municipal firefighter established by an agency authorized to establish these requirements on a Statewide basis, or comparable training and physical and mental fitness requirements as determined by the board of trustees. The term shall also include an administrative or supervisory employee of a firefighting unit whose duties include general or direct supervision of employees engaged in fire control and extinguishment activities or training responsibility for these employees and a requirement for engagement in fire control and extinguishment activities if necessary. As used in this paragraph, "firefighting unit" shall mean a municipal fire department, a fire district, or an agency of a county or the State which is responsible for control and extinguishment of fires.

    (3) "Member" shall mean any policeman or fireman included in the membership of the retirement system pursuant to this amendatory and supplementary act, P.L.1989, c.204 (C.43:16A-15.6 et al.).

    (4) "Board of trustees" or "board" shall mean the board provided for in section 13 of this act.

    (5) "Medical board" shall mean the board of physicians provided for in section 13 of this act.

    (6) "Employer" shall mean the State of New Jersey, the county, municipality or political subdivision thereof which pays the particular policeman or fireman.

    (7) "Service" shall mean service as a policeman or fireman paid for by an employer.

    (8) "Creditable service" shall mean service rendered for which credit is allowed as provided under section 4 of this act.

    (9) "Regular interest" shall mean interest as determined by the State Treasurer, after consultation with the Directors of the Divisions of Investment and Pensions, the board of trustees and the actuary. It shall bear a reasonable relationship to the percentage rate of earnings on investments based on the market value of assets but shall not exceed the assumed percentage rate of increase applied to salaries plus 3%, provided however that the board of trustees shall not set the average percentage rate of increase applied to salaries below 6%.

    (10) "Aggregate contributions" shall mean the sum of all the amounts, deducted from the compensation of a member or contributed by him or on his behalf, standing to the credit of his individual account in the annuity savings fund.

    (11) "Annuity" shall mean payments for life derived from the aggregate contributions of a member.

    (12) "Pension" shall mean payments for life derived from contributions by the employer.

    (13) "Retirement allowance" shall mean the pension plus the annuity.

    (14) "Earnable compensation" shall mean the full rate of the salary that would be payable to an employee if he worked the full normal working time for his position. In cases where salary includes maintenance, the retirement system shall fix the value of that part of the salary not paid in money which shall be considered under this act.

    (15) "Average final compensation" shall mean the average annual salary upon which contributions are made for the three years of creditable service immediately preceding his retirement or death, or it shall mean the average annual salary for which contributions are made during any three fiscal years of his or her membership providing the largest possible benefit to the member or his beneficiary.

    (16) "Retirement" shall mean the termination of the member's active service with a retirement allowance granted and paid under the provisions of this act.

    (17) "Annuity reserve" shall mean the present value of all payments to be made on account of any annuity or benefit in lieu of any annuity computed upon the basis of such mortality tables recommended by the actuary as shall be adopted by the board of trustees, and regular interest.

    (18) "Pension reserve" shall mean the present value of all payments to be made on account of any pension or benefit in lieu of any pension computed upon the basis of such mortality tables recommended by the actuary as shall be adopted by the board of trustees, and regular interest.

    (19) "Actuarial equivalent" shall mean a benefit of equal value when computed upon the basis of such mortality tables recommended by the actuary as shall be adopted by the board of trustees, and regular interest.

    (20) "Beneficiary" shall mean any person receiving a retirement allowance or other benefit as provided by this act.

    (21) "Child" shall mean a deceased member's or retirant's unmarried child (a) under the age of 18, or (b) 18 years of age or older and enrolled in a secondary school, or (c) under the age of 24 and enrolled in a degree program in an institution of higher education for at least 12 credit hours in each semester, provided that the member died in active service as a result of an accident met in the actual performance of duty at some definite time and place, and the death was not the result of the member's willful misconduct, or (d) of any age who, at the time of the member's or retirant's death, is disabled because of mental retardation or physical incapacity, is unable to do any substantial, gainful work because of the impairment and his impairment has lasted or can be expected to last for a continuous period of not less than 12 months, as affirmed by the medical board.

    (22) "Parent" shall mean the parent of a member who was receiving at least one-half of his support from the member in the 12-month period immediately preceding the member's death or the accident which was the direct cause of the member's death. The dependency of such a parent will be considered terminated by marriage of the parent subsequent to the death of the member.

    (23) "Widower" shall mean the man to whom a member or retirant was married at least one year before the date of her death and to whom she continued to be married until the date of her death and who has not remarried. In the event of the payment of an accidental death benefit, the one-year qualification shall be waived.

    (24) "Widow" shall mean the woman to whom a member or retirant was married at least one-year before the date of his death and to whom he continued to be married until the date of his death and who has not remarried. In the event of the payment of an accidental death benefit, the one year qualification shall be waived.

    (25) "Fiscal year" shall mean any year commencing with July 1, and ending with June 30, next following.

    (26) "Compensation" shall mean the base salary, for services as a member as defined in this act, which is in accordance with established salary policies of the member's employer for all employees in the same position but shall not include individual salary adjustments which are granted primarily in anticipation of the member's retirement or additional remuneration for performing temporary duties beyond the regular workday.

    (27) "Department" shall mean any police or fire department of a municipality or a fire department of a fire district located in a township or a county police or park police department or the appropriate department of the State or instrumentality thereof.

    (28) "Final compensation" means the compensation received by the member in the last 12 months of creditable service preceding his retirement.

    (29) (Deleted by amendment, P.L.1992, c.78).

    (30) (Deleted by amendment, P.L.1992, c.78).

    (31) "Former spouse" means a person to whom a retirant was married for a continuous period of at least 10 years at any time during the retirant's lifetime, but to whom the retirant was no longer married at the time of the retirant's death, and who did not remarry prior to the retirant's death.

(cf: P.L.1996, c.89, s.1)

 

    2. (New section) a. Upon the death after retirement of any retirant from the retirement system, there shall be paid to a former spouse of the retirant an annuity if, and to the extent that, the payment of such an annuity shall have been expressly provided for in an election under subsection b. of this section, or in the terms of any decree of divorce or annulment or any court order or court-approved property settlement agreement incident to such a decree. The amount of the annuity payable under this section to such a former spouse shall not exceed the difference between (1) the pension to which the former spouse would be entitled under section 26 of P.L.1967, c.250 (C.43:16A-12.1) if the person were the widow or widower of the deceased retirant, and (2) the amount of any annuity payable under this subsection to any other former spouse of the decedent pursuant to an election previously made under that subsection b. or under such a decree, court order, or court-approved property settlement agreement previously issued.

    b. A member of or retirant from the retirement system who has a former spouse may elect to receive, in lieu of any retirement allowance to which that member is entitled under the provisions of P.L.1944, c.255 (C.43:16A-1 et seq.), a reduced allowance payable throughout the life of the member in order to provide a survivor annuity for that former spouse under subsection a. of this section. The member or retirant shall make such an election by filing notice thereof with the board of trustees of the retirement system, which notice shall be in a form to be prescribed by the director of the Division of Pensions and Benefits. An election under this subsection by a member shall be made at the time of retirement. An election hereunder by a retirant shall be made within two years after the date on which the marriage of the former spouse to the retirant is dissolved.

    An election under this subsection shall be ineffective (1) to the extent that it conflicts with a decree, order or agreement referred to under subsection a. of this section which was issued or entered into, as appropriate, before the date of that election, or would cause the total of survivor annuities under this section to exceed the amount of the pension to which a widow or widower of the retirant would be entitled under the provisions of section 26 of P.L.1967, c.250 (C.43:16A-12.1), or (2) in the case of a retirant who is married, unless it is made with the written consent of the spouse of the retirant.

    c. (1) The retirement allowance under P.L.1944, c.255 (C.43:16A-1 et seq.) of any retirant from the retirement system who has a former spouse who is entitled to a survivor annuity pursuant to the provisions of subsection a. of this section shall be actuarially reduced by an amount as the actuary determines to be required to provide the survivor annuity benefit.

    (2) In the case of a retirant whose former spouse is entitled to such a survivor benefit pursuant to an election under subsection b. of this section or under the terms of a decree, court order or agreement, which election, decree, order or agreement took effect after payment to the retirant of the first installment of the retirement allowance, the retirant shall, in addition to the reduction as provided under paragraph (1) of this subsection, be liable for repayment to the retirement system within two years after such effective date of the amount determined by the Division of Pensions and Benefits as required to reflect the amount by which the retirement allowance of the retirant would have been reduced if the election had been continuously in effect since the date of the member's retirement, including regular interest. The amount of the payment shall be deducted from the retirement allowance payable to the retirant, but in no event shall the amount of any such deduction exceed 50% of the amount of that allowance. The retirant shall be deemed to have consented to the deduction.

    d. Any reduction in a retirement allowance for the purpose of providing to a former spouse a survivor annuity under this section shall be terminated if the former spouse remarries or dies.

 

    3. (New section) a. A former spouse of a retirant from the retirement system who died on or before the 60th day following the effective date of this act shall be entitled to a survivor annuity if (1) the former spouse's marriage to the retirant was dissolved on or after January 1, 1987, (2) the former spouse was married to the retirant for a period of at least 10 years during the active service of the retirant as a member of the retirement system, (3) the former spouse is not entitled to any other retirement or survivor benefit from any pension fund or retirement system established under the laws of this State, (4) the former spouse has not remarried since the dissolution of the marriage to the retirant, (5) the former spouse files an application for the survivor annuity with the board of trustees of the retirement system within one year after the effective date of this act, and (6) the former spouse is at least 50 years of age at the time that application is filed. The survivor annuity shall commence on the first day of the second month following the month in which the retirant dies or the former spouse's application under this subsection is received by the board, whichever occurs later.

    b. The amount of the survivor annuity payable under this subsection shall be one-half of the retirement allowance, exclusive of any adjustment under the "Pension Adjustment Act", P.L.1958, c.143 (C.43:3B-1 et seq.), to which the retirant was entitled, but shall not exceed the amount of the pension to which the former spouse would be entitled under section 26 of P.L.1967, c.250 (C.43:16A-12.1) if the former spouse were the widow or widower of the retirant.

 

    4. This act shall take effect immediately.


STATEMENT

 

    This bill provides for payment by the Police and Firemen's Retirement System (PFRS) to a former spouse of a PFRS retirant of a survivor's annuity. The amount of the annuity, or the total amount of all such annuities, with respect to the former spouse or spouses of a particular retirant could not exceed the amount of the pension to which a surviving spouse of that retirant would be entitled. Eligibility of a former spouse or spouses of a retirant for the survivor annuity would not affect the eligibility of a surviving current spouse of the retirant for, or the amount of, the widow or widower's pension already provided under the PFRS statute.

    The legislation authorizes the PFRS to pay a former spouse survivor benefit upon the election of the PFRS member at or after retirement, or under the terms of a decree of divorce or annulment or court order or court-approved property settlement agreement incident to such a decree. To qualify for the benefit, the former spouse would be required to have been married to the retirant for at least 10 years. The cost of the benefit would be financed through an actuarial reduction of the retirement allowance payable to the retirant.

    In addition, the legislation provides limited retroactive relief to the surviving former spouse of a PFRS retirant who shall have died before, or within 60 days of, the date on which the legislation takes effect as law, provided (1) the former spouse was married to the retirant for at least 10 years, (2) the marriage was dissolved on or after January 1, 1987, (3) the former spouse is not entitled to any other retirement or survivor benefit from a New Jersey public pension fund or retirement system, (4) the former spouse has not remarried since the dissolution of the marriage to the retirant, (5) the former spouse files an application for the survivor annuity with the board of trustees of the retirement system within one year after the effective date of the legislation, and (6) the former spouse is at least 50 years of age at the time that application is filed.

    This legislation is modelled on similar provisions (5 U.S.C.A. §§8339 and 8341) of the federal "Civil Service Retirement Spouse Equity Act of 1984", P.L.98-615, 98 Stat. 3195.

 

 

                             

Provides for payment of annuity to former spouse of deceased PFRS retirant in certain cases.