CHAPTER 394
An Act concerning the eligibility of certain public employees for membership in the Public Employees’ Retirement System of New Jersey.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding any provision to the contrary of section 1 of P.L.1968, c.23 (C.43:3C-1) or any other law, if on the effective date of P.L.1997, c.394, a former member of an employees’ retirement system established under P.L.1954, c.218 (C.43:13-22.3 et seq.) (1) is eligible to receive a pension granted by that retirement system for any cause other than vesting or deferred retirement, the amount of which pension shall have been limited, through the imposition under that retirement system of a restriction on the maximum amount of the annual salary of the former member that was eligible to be considered for pension purposes, to an amount less than the amount of pension which the former member would have been eligible to receive from the retirement system in the absence of that restriction, and (2) is employed again in a position which, except as otherwise provided by P.L.1968, c.23, makes the person eligible to be a member of the Public Employees’ Retirement System established by P.L.1954, c.84 (C.43:15A-1 et seq.), then the person shall be entitled to be enrolled in the Public Employees’ Retirement System upon repayment to the former retirement system of the total amount of any payments of pension that the person shall have received therefrom and submission to that former retirement system of a waiver, in such form as the former system shall require, of all rights and benefits which would otherwise be provided by the former retirement system. The waiver shall be effective from the date of its receipt by the former retirement system. The application of the person for enrollment in the Public Employees’ Retirement System shall be filed with the retirement system not later than the 180th day following the effective date of P.L.1997, c.394 and shall include a copy of the waiver and proof, in such form as the Public Employees’ Retirement System shall require, of the repayment of benefits to the former retirement system in accordance with the provisions of this subsection.
b. Upon receipt of an application for enrollment under the provisions of subsection a. of this section, the Public Employees’ Retirement System shall enroll the applicant as a member thereof and shall notify the former retirement system of such enrollment. Within 180 days of its receipt of that notice, the former retirement system shall remit to the Public Employees’ Retirement System an amount consisting of (1) the total of all contributions which shall have been deducted from the salary of the person during membership in the former retirement system, with interest at the annual rate of 6% compounded annually, and (2) the pro rata portion of all contributions to the former retirement system by the former employer of the person during such membership in that former retirement system that is applicable to that membership, with interest at the annual rate of 6%, compounded annually. The Public Employees’ Retirement System shall enter the respective sums so remitted to the credit of the member in the annuity savings fund of that retirement system and to the credit of employers of the member in the contingent reserve fund of that retirement system.
c. Any credit for public service previously established by the member in the former retirement system shall be established in the Public Employees’ Retirement System. If the amounts remitted to the Public Employees’ Retirement System under subsection b. of this section are insufficient to provide for the full cost of establishing that credit in the Public Employees’ Retirement System, then the amount of that deficiency shall be payable by the member. Payment to the Public Employees’ Retirement System by the member of the amount of any liability of the member under this subsection may be made in a lump sum or through regular deductions from the member’s salary that will provide for full payment of the liability, with regular interest, over such period of time as the member may select, but not exceeding five years. The Public Employees’ Retirement System shall enter the sum or sums so remitted to the credit of the member in the annuity savings fund of that retirement system.
If the member retires from the Public Employees’ Retirement System prior to completing payment under this subsection of the member's liability for the cost of establishing full credit in that retirement system for service credit previously established in the former retirement system, the member shall receive pro rata credit for service in proportion to the payments made by the member prior to the date of retirement, but if the member so elects at the time of retirement, the member may make an additional lump-sum payment required at that time to provide full credit.
d. An employee enrolled in the Public Employees’ Retirement System under subsection b. of this section on the basis of service in a position covered by that retirement system may purchase credit in the retirement system for all or any portion of such service rendered prior to the date of enrollment. The purchase shall be made in the same manner and subject to the same terms and conditions provided for the purchase of previous membership service by section 8 of P.L.1954, c.84 (C.43:15A-8).
2. This act shall take effect immediately.
Approved January 19, 1998.