SENATE COMMUNITY AFFAIRS COMMITTEE

 

STATEMENT TO

 

SENATE, No. 1328

 

STATE OF NEW JERSEY

 

DATED: JUNE 24, 1996

 

      The Senate Community Affairs Committee reports favorably Senate Bill No. 1328.

      This bill would amend a provision of the law establishing the Council on Local Mandates that requires employees and members of the Council to be enrolled in the Public Employees' Retirement System (PERS).

      The statute governing the PERS provides that if anyone receiving a PERS retirement allowance other than for disability "becomes employed again in a position which makes him eligible to be a member of the retirement system," the person is to be re-enrolled in the system and the retirement allowance is to be "cancelled" until the person again retires (section 27 of P.L.1966, c.217, C.43:15A-57.2). This provision could hamper recruitment to the Council of PERS retirants with extensive experience in public administration and finance, municipal law, and other subject areas likely to be implicated in matters addressed by the Council.

      In addition, the 1968 statute governing pensioners in public employment, section 1 of P.L.1968, c.23 (C.43:3C-1) provides that if a former member of a New Jersey public pension system receiving a pension or retirement allowance "becomes employed again in a position which makes him eligible to be a member of another [public] pension fund or retirement system," that person is not to be enrolled in the latter fund or system.

      Accordingly, the bill would provide that no person who has been granted a retirement allowance by any New Jersey public pension fund prior to commencing service as an employee or a member of the council would be eligible on the basis of that service for enrollment or membership in that retirement system.