SENATE, No. 766

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 15, 1996

By Senator BUBBA

An Act concerning the purchase of previous service by certain members of the Teachers' Pension and Annuity Fund and supplementing chapter 66 of Title 18A of the New Jersey Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Notwithstanding any other law to the contrary, a member of the retirement system who has at least 10 years of service credit may purchase credit for up to five years of service rendered in a position covered by the alternate benefit program established pursuant to P.L.1969, c.242 (C.18A:66-167 et seq.). The member may purchase credit for the service by paying into the annuity savings fund the amount required by applying the factor, supplied by the actuary, as being applicable to the age of the member at the time of the purchase to the salary of the member at that time, together with an amount equal to the contributions made to the alternate benefit program by the employer on behalf of the member for the service to be purchased. The purchase may be made in regular installments, equal to at least one-half the full normal contribution to the retirement system, over a maximum period of 10 years.

    Any member electing to contribute toward the service who retires prior to completing payments as agreed with the retirement system for the purchase of the service will receive pro rata credit for service purchased prior to the date of retirement, but the member may elect at the time of retirement to make any additional lump sum payment at that time as will be necessary to provide full credit.

    2. This act shall take effect immediately .

STATEMENT

    This bill permits a member of the Teachers' Pension and Annuity Fund who has at least 10 years of service credit to purchase credit for up to five years of service rendered in a position covered by the alternate benefit program. The member may purchase credit for the service by paying into the annuity savings fund the amount required by applying the factor, supplied by the actuary, as being applicable to the age of the member at the time of the purchase to the salary of the member at that time, together with an amount equal to the contributions made to the alternate benefit program by the employer on behalf of the member for the service to be purchased.

Permits certain members of TPAF to purchase credit for service rendered in the alternate benefit program.