SENATE STATE MANAGEMENT, INVESTMENT AND FINANCIAL INSTITUTIONS COMMITTEE

STATEMENT TO

SENATE, No. 1140

STATE OF NEW JERSEY

DATED: OCTOBER 7, 1996

      The Senate State Management, Investment and Financial Institutions Committee reports favorably Senate, No. 1140.

      At present, a member of the Police and Firemen's Retirement System (PFRS) who retires on accidental disability receives a retirement allowance of 2/3 of the member's actual annual compensation for which contributions were being made at the time of the occurrence of the accident. This bill provides that the member may instead receive a retirement allowance of 2/3 of the member's actual annual compensation for which contributions were being made at the time of the member's retirement, whichever provides the largest possible benefit to the member.

      Any increased pension benefits payable under this act shall apply to the benefits received by any member who retired on an accidental disability retirement on or after April 1, 1991 and shall apply only to pension benefits payable on or after the effective date of this act. The bill also provides that retirees will maintain their pension adjustment benefits.

      At its July 12, 1996 meeting, the Pension and Health Benefits Review Commission recommended enactment of this bill.