ASSEMBLY, No. 2785
STATE OF NEW JERSEY
INTRODUCED MARCH 3, 1997
By Assemblyman KELLY
An Act concerning certain survivor benefits under the Police and Firemen's Retirement System of New Jersey and amending P.L.1944, c.255.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 9 of P.L.1944, c.255 (C.43:16A-9) is amended to read as follows:
9. (1) Upon the receipt of proper proof of the death of a member in active service on account of which no accidental death benefit is payable under section 10 (C.43:16A-10):
If the member shall not have established 25 years of creditable service at the time of death, there shall be paid to such member's beneficiary[:] (a) [The] the member's aggregate contributions at the time of death, and (b) [An] 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;
If the member shall have established 25 years of creditable service at the time of death, there shall be paid to the member's widow or widower a pension of 50% of average final compensation for the use of herself or himself, to continue during her or his widowhood, plus 15% of such compensation payable to one surviving child or an additional 25% of such compensation to two or more children; if there is no surviving widow or widower or in case the widow or widower dies or remarries, 20% of average final compensation will be payable to one surviving child, 35% of such compensation to two surviving children in equal shares and if there be three or more children, 50% of such compensation would be payable to such children in equal shares.
(2) a. For the purposes of this section and section 10 (5), a member of the Police and Firemen's Retirement System shall be deemed to be an active member for a period of no more than 93 days while on official leave of absence without pay when such leave is due to any reason other than illness, and for a period of not more than one year in the event of an official leave (a) due to the member's maternity, or (b) to fulfill a residency requirement for an advanced degree, or (c) as a full-time student at an institution of higher education, and (1) while he is disabled due to sickness or injury arising out of or in the course of his employment as a member to whom this act applies, is not engaged in any gainful occupation, and is receiving or entitled to receive periodic benefits (including any commutation of, or substitute for, such benefits) for loss of time on account of such disability under or by reason of workmen's compensation law, occupational disease law or similar legislation and has not retired or terminated his membership; or (2) for a period of no more than two years while on official leave of absence without pay if satisfactory evidence is presented to the retirement system that such leave of absence without pay is due to the member's personal illness other than an illness to which (1) above applies.
b. If a member dies within 30 days after the date of retirement or the date of board approval, whichever is later, a death benefit shall be payable only if he is deemed to be an active member in accordance with this section; provided, however, a member applying for disability benefits shall be deemed an active member if he was covered by the death benefit provisions of the act at the termination of employment, filed the application for disability retirement with the retirement system within 30 days following such termination of employment and dies within 30 days after the date of retirement or the date of board approval, whichever is later. If a member files an application for disability retirement while in service and otherwise meets the requirements for disability retirement, but dies before the retirement takes effect, the retirement shall be considered effective.
(cf: P.L.1995, c.47, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill revises the survivorship benefits payable upon the non-service-connected death of an active member of the Police and Firemen's Retirement System (PFRS).
Under current law, upon the non-accidental death in service of any PFRS member, those benefits are payable to the member's beneficiary and consist of (a) return of the member's aggregate contributions at the time of death, plus (b) an amount equal to 3½ times the member's pensionable salary during the last year of creditable service.
Under the bill, if the active member shall have established 25 years of creditable service prior to death, the survivorship benefits are to be equivalent to the benefits that would have been payable if the member had been a retirant with 25 years or more of creditable service. Those benefits consist of (1) payment to the member's beneficiary of an amount equal to ½ of the compensation received by the member in the last 12 months of creditable service preceding death, plus (2) payment to the member's surviving spouse during that person's widowhood of a pension of 50% of average final compensation, plus an additional 15% of such compensation payable to one surviving child or an additional 25% of such compensation to two or more children.
Provides that ordinary death benefits to survivors of active PFRS members with at least 25 years' service shall be same as benefits to survivors of PFRS retirants.