ASSEMBLY STATE GOVERNMENT COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2966

STATE OF NEW JERSEY

DATED: JUNE 12, 1997

      The Assembly State Government Committee reports favorably Assembly, No. 2966.

      This bill (1) reduces from 62 to 60 the age at which a veteran member of the Public Employees' Retirement System (PERS) in office, position, or employment of the State who has 20 years of aggregate service credit may retire on the special veterans' retirement allowance of one-half of the compensation for which contributions were made during the 12-month period of membership providing the largest possible benefit, and (2) provides that such a veteran member of PERS who has attained 55 years of age and has 25 years of aggregate service credit may retire on the special veterans' retirement allowance.

      The bill also permits a local government employer (1) to reduce from 62 to 60 the age at which a veteran member of PERS employed by that employer who has 20 years of aggregate service credit may retire on the special veterans' retirement allowance, or (2) to provide that a veteran member of PERS in its employment who has attained 55 years of age and has 25 years of aggregate service credit may retire on the special veterans' retirement allowance, or (3) to do both. Any such authorization shall be irrevocable. The cost of the benefit provided shall be added to the unfunded liability of, and paid by, the employer.

      At its meeting on June 6, 1997, the Pension and Health Benefits Review Commission adopted a recommendation that "the Legislature not enact A-2966 because issues of equity among retirement systems should be reviewed as part of a more comprehensive study of all benefits."