SENATE STATE MANAGEMENT, INVESTMENT AND FINANCIAL INSTITUTIONS COMMITTEE

STATEMENT TO

SENATE, No. 1152

STATE OF NEW JERSEY

DATED: OCTOBER 7, 1996

      The Senate State Management, Investment and Financial Institutions Committee reports favorably Senate, No. 1152.

      This bill would allow a retired member of the Public Employees’ Retirement System (PERS) to accept employment in a position covered by the retirement system without being subject to cancellation of retirement benefits and reenrollment in the system, provided the person’s annual compensation from the position does not exceed $10,000. Neither the individual nor the employer would be required to contribute to the retirement system with respect to the new employment.

      According to the fiscal estimate to an identical bill, A-1604 (1R), "although the retirement system will lose future employer and employee contributions for these employees, there will be no additional cost to the retirement system or to the State and local government employers because these employees will not be eligible to receive a retirement benefit based on their service during reemployment."

      At its May 17, 1996 meeting, the Pension and Health Benefits Review Commission recommended that the Legislature enact an identical bill, A-1604 (1R), "because it provides retirees an opportunity to undertake part-time employment while retaining their retirement benefits."