SENATE STATE MANAGEMENT, INVESTMENT AND FINANCIAL INSTITUTIONS COMMITTEE

STATEMENT TO

SENATE, No. 637

STATE OF NEW JERSEY

DATED: MAY 9, 1996

      The Senate State Management, Investment and Financial Institutions Committee reports favorably Senate, No. 637.

      This bill concerns accidental death benefits under the Police and Firemen's Retirement System. At present, if a member dies as a result of an accident met in the actual performance of duty, the beneficiary receives, in addition to other benefits, 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. However, this benefit cannot be provided to the beneficiary if the member dies during the first year of creditable service. To correct this problem, this bill provides that in the event of accidental death occurring in the first year of creditable service, the death benefit paid to the beneficiary shall be computed at 3 1/2 times the annual rate of compensation.

      This act shall take effect immediately and shall be retroactive to April 1, 1995.

      Last session, the Pension and Health Benefits Review Commission recommended that the Legislature enact an identical bill (S-1982).