SENATE STATE MANAGEMENT, INVESTMENT AND FINANCIAL INSTITUTIONS COMMITTEE

STATEMENT TO

SENATE, No. 507

STATE OF NEW JERSEY

DATED: JUNE 6, 1996

      The Senate State Management, Investment and Financial Institutions Committee reports favorably Senate, No. 507.

      This bill provides that a member of the Police and Firemen's Retirement System (PFRS) who had established service credit in a municipal or county retirement system or pension fund and who is ineligible to transfer the service credit to PFRS may purchase credit for all of the service with the municipality or county. In order to purchase the credit, a member shall not have a vested right to retirement benefits in the municipal or county retirement system or pension fund. In addition, a member shall pay the full cost attributable to the increased benefits to be derived from the purchased credit but shall not be liable for any costs associated with the financing of pension adjustment benefits and health care benefits for retirees.

      At its May 17, 1996 meeting, the Pension and Health Benefits Review Commission recommended that "the Legislature enact S-507 because it brings the PFRS purchase provisions into conformity with PERS and TPAF."