LEGISLATIVE FISCAL ESTIMATE TO


SENATE, No. 1301


STATE OF NEW JERSEY

 

DATED: DECEMBER 17, 1996

 

 

      Senate Bill No. 1301 of 1996 changes the death benefit payable to the surviving beneficiary of a retired member of the Public Employees' Retirement System. Under current law, the retirant's paid-up life insurance benefit is based upon compensation received by the retirant in the last year of creditable service. The bill provides that the benefit would be based upon either that compensation or the highest compensation received in any fiscal year of membership, whichever is greater.

      The Office of Legislative Services (OLS) notes that the non-contributory life insurance benefit payable to the surviving beneficiary of a retired member of PERS is 3/16 of final salary. There is currently no information available, either to the OLS or the Division of Pensions and Benefits, to indicate the number of individuals who might be affected by this legislation. The OLS believes the number to be small. The OLS notes that although there are occasions where members earn more in a prior year of employment than in their last year, these circumstances are unusual and the cost to the retirement system (and therefore the employer) for benefits on behalf of these members would be minimal.

      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.