T & E
P.L. 1997, CHAPTER 397, approved January 19, 1998
Senate, No. 2117 (First Reprint)
An Act concerning the purchase of certain service credit in State-administered retirement systems.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. A retiree under a State-administered retirement system who is also receiving a pension based on public employment in another state and who was 1[denied] ineligible for1 enrollment in a State-administered retirement system 1prior to September 10, 19911 because of eligibility to receive a pension based on public employment in another state may apply, within 1 301 days of the effective date of this act, to the board of trustees of the retirement system to purchase up to 10 years of credit for the service which had been rendered in any position covered by the retirement system for which 1[, as the result of that denial of enrollment,]1 the person has received no credit. The retiree may purchase all or a portion of the service credit by paying into the annuity savings fund the amount required by applying the factor, supplied by the actuary, as being applicable to the retiree's age at the time of the purchase to the highest annual compensation for service in this State for which contributions were made during any prior fiscal year of membership. A retiree shall not be liable for any costs associated with the financing of pension adjustment benefits and health care benefits for retirees when purchasing service credit. The purchase shall be made in a lump sum and the retiree's retirement allowance shall be recalculated to reflect the purchased service credit.
2. This act shall take effect immediately and shall expire 1 311 days thereafter.
Allows retirees to purchase service credit for certain prior employment.