SENATE, No. 774

STATE OF NEW JERSEY

INTRODUCED FEBRUARY 15, 1996

By Senator BUBBA

An Act concerning the Teachers' Pension and Annuity Fund and amending N.J.S.18A:66-71

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

    1. N.J.S.18A:66-71 is amended to read as follows:

    18A:66-71. a. Any public employee veteran member in office, position or employment of this State or of a county, municipality, or school district, board of education or other employer who (1) has or shall have attained the age of 60 years and has or shall have been for 20 years continuously or in the aggregate in office, position or employment of this State or of a county, municipality or school district, board of education or other employer, or (2) has or shall have attained the age of 55 years and has or shall have been for 25 years continuously or in the aggregate in that office, position or employment, shall have the privilege of retiring for service and of receiving, instead of the retirement allowance provided under N.J.S.18A:66-44, a retirement allowance of one-half of the compensation [received during the last year of employment upon which contributions to the annuity savings fund or contingent reserve fund are made] for which contributions are made during the 12-month period of membership providing the largest possible benefit to the member or the member's beneficiary.

    b. (Deleted by amendment, P.L.1984, c.69.)

    c. Any public employee veteran member who has been for 20 years in the aggregate in office, position or employment of this State or of a county, municipality or school district, board of education or other employer as of January 1, 1955, shall have the privilege of retiring for ordinary disability and of receiving, instead of the retirement allowance provided under N.J.S.18A:66-41, a retirement allowance of one-half of the compensation received during the last year of employment upon which contributions to the annuity savings fund or contingent reserve fund are made. Such retirement shall be subject to the provisions governing ordinary disability retirement in N.J.S.18A:66-39 and N.J.S.18A:66-40.

    d. Any public employee veteran member who shall be in office, position or employment of this State or of a county, municipality, school district, board of education or other employer and who shall have attained 60 years of age and who has at least 35 years of aggregate service credit in such office, position or employment, shall have the privilege of retiring for service and receiving a retirement allowance of one-sixtieth of the compensation he received during the last year of employment upon which contributions to the annuity savings fund or contingent reserve fund are made for each year of creditable service.

    e. The death benefit provided in N.J.S.18A:66-44 shall apply in the case of any member retiring under the provisions of subsections a. and d. of this section and in the case of any member who has previously retired under the provisions of subsection b. of this section before said subsection was amended by this act. The death benefit provided in N.J.S.18A:66-41 shall apply in the case of any member retiring under the provisions of subsection c. of this section.

    f. A member who purchases service credit pursuant to any provision of the "Teachers' Pension and Annuity Fund Law" (N.J.S.18A:66-1 et seq.) is entitled to apply the credit for the purpose of satisfying any of the service requirements of that act.

(cf: P.L.1987, c.97, s.1)

    2. This act shall take effect immediately.

STATEMENT

    This bill changes the basis upon which the retirement allowance for public employees retiring under the special veterans' benefits of the Teachers' Pension and Annuity Fund (TPAF) is computed. Under current law, the computation of benefits is based upon compensation received during the last year of service. This bill provides that the basis of the retirement allowance of these members shall be the compensation received for the 12-month period of membership that provides the largest possible benefit to the member or the member's beneficiary.

Changes basis upon which retirement allowance is determined for public employee veterans in TPAF.