LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

SENATE, No. 853

STATE OF NEW JERSEY

DATED: NOVEMBER 12, 1996

      Senate Bill No. 853 (1R) of 1996 allows any criminal investigator in the Division of Criminal Justice enrolled in the Public Employees' Retirement System (PERS) to transfer into the Police and Firemen's Retirement System (PFRS). Any service credit which has been established in the PERS by the transferred employee shall be credited to the PFRS. The transferring employee is to be responsible for payment of the difference in the employee's contributions between the PERS and the PFRS plus regular interest.

      The Office of Legislative Services notes that it has no information on the number of individuals that would be affected by this legislation, but believes the number to be small.

      Based on the average salary of $55,182 for investigators, the annual employer cost of transferring one investigator from the PERS to the PFRS would be $9,304. This estimate was derived by comparing the employer (State) pension contribution rate of 2.29 percent for the PERS versus the employer contribution rate of 19.151 percent for the PFRS. In addition, there would be an unfunded accrued liability payment for the accumulated service credit transferred from the PERS to the PFRS. The liability payment would depend on the amount of service credit transferred.

      This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.