ASSEMBLY STATE GOVERNMENT COMMITTEE

STATEMENT TO

SENATE, No. 972

STATE OF NEW JERSEY

DATED: NOVEMBER 7, 1996

      The Assembly State Government Committee reports favorably Senate, No. 972.

      This bill restores the staggered terms for the three members of the board of trustees of the Teachers' Pension and Annuity Fund who are elected from among the active or retired members of the retirement system. The terms of those members were originally staggered and filled only for the unexpired term, but the provision for filling vacancies for the unexpired term was eliminated in 1971. Several years ago there was a mid-term vacancy which resulted in two elected members standing for election at the same time and serving concurrent terms. This creates the potential for instability and a lack of continuity among the elected members of the board. Under this bill, the requirement for filling vacancies for the unexpired term is restored, and specific terms for the next three holders of the elected positions are established. Thereafter, one member will be elected each year for a three-year term.