SENATE, No. 1397
STATE OF NEW JERSEY
INTRODUCED JULY 25, 1996
By Senator MacINNES
An Act concerning pensions payable to certain ex-spouses under the Police and Firemen's Retirement System and amending P.L.1967, c.250.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 26 of P.L.1967, c.250 (C.43:16A-12.1) is amended to read as follows:
26. a. Upon the death after retirement of any member of the retirement system there shall be paid to [his]the widow or widower a pension of 50% of average final compensation for the use of herself or himself, to continue during her or his widowhood,[ plus]except that if a retirant is divorced and if the divorce decree provides that the ex-spouse shall receive a portion of the retirant's retirement allowance, the ex-spouse, if not remarried, shall continue to receive that amount, up to 50% of average final compensation, upon the retirant's death. If the retirant has remarried at least two years before the date of death and continued to be married at the date of death, the spouse shall receive a pension of 50% of average final compensation less the amount payable to the retirant's ex-spouse pursuant to a divorce decree. In addition, 15% of [such] average final compensation [payable]shall be paid to one surviving child or an additional 25% of such compensation to two or more children; if there is no surviving widow or widower or in case the widow or widower dies or remarries, 20% of average final compensation will be payable to one surviving child, 35% of such compensation to two surviving children in equal shares and if there be three or more children, 50% of such compensation would be payable to such children in equal shares.
b. The increased pension benefits payable under this act shall apply only to cases where such policeman or fireman retires on or after December 18, 1967 and shall not affect pensions paid or to be paid as a result of retirements occurring prior to said date. The increased pension benefits payable under this subsection of this 1991 amendatory and supplementary act shall apply only to pension benefits payable on or after the effective date of this 1991 amendatory and supplementary act, P.L.1991, c.511 (C.43:3B-8.4 et al.).
c. As of the effective date of this 1991 amendatory and supplementary act, P.L.1991, c.511 (C.43:3B-8.4 et al.), all widows' and widowers' pensions previously granted or to be granted pursuant to the provisions of subsection a. of this section or section 10 of chapter 255 of the laws of 1944, as amended, and all such pensions previously granted, or to be granted where retirement for accidental disability occurred prior to December 18, 1967, pursuant to the provisions of section 7(3) of chapter 255 of the laws of 1944 prior to the amendment of that section by P.L.1967, c.250, will be subject to a minimum, annual, aggregate payment of $4,500. The increased pension benefits payable under this subsection of this 1991 amendatory and supplementary act shall apply only to pension benefits payable on or after the effective date of this 1991 amendatory and supplementary act, P.L.1991, c.511 (C.43:3B-8.4 et al.).
d. The State shall reimburse local governments for additional pension costs arising from any increase in the annual pension payable to a widow or widower pursuant to this section of this 1991 amendatory and supplementary act, P.L.1991, c.511 (C.43:3B-8.4 et al.).
(cf: P.L.1991,c.511,s.1)
2. Any widow or widower receiving a pension pursuant to section 26 of P.L.1967, c.250 (C.43:16A-12.1) prior to the enactment date of this act, P.L. , c. (C. ) (now pending before the Legislature as this bill), who would be ineligible to continue to receive the full pension after the effective date of this act shall continue to receive the full pension.
3. This act shall take effect immediately and shall be retroactive to July 1, 1995.
STATEMENT
At present, upon the death of a retirant of the Police and Firemen's Retirement System (PFRS), there is paid to the widow or widower a pension of 50% of average final compensation (the average annual salary upon which contributions are made for the three years of creditable service immediately preceding retirement or death or the average annual salary for which contributions are made during any three fiscal years of membership providing the largest possible benefit to the member or the beneficiary). To qualify for this pension, a spouse must be married to a retirant for at least two years before the date of the retirant's death. This requirement has harmed divorced women who have been awarded a portion of a retirant's retirement allowance in a divorce decree but were not entitled to have that payment continue upon the retirant's death. This bill seeks to remedy this problem by providing that if a retirant is divorced and if the divorce decree provides that the ex-spouse shall receive a portion of the retirant's retirement allowance, the ex-spouse, if not remarried, shall continue to receive that amount, up to 50% of average final compensation, upon the retirant's death. If the retirant has remarried at least two years before the date of death and continued to be married at the date of death, the spouse shall receive a pension of 50% of average final compensation less the amount payable to the retirant's ex-spouse pursuant to a divorce decree.
This act shall take effect immediately and is retroactive to July 1, 1995. Any widow or widower receiving a pension prior to the enactment date of this act who would be ineligible to continue to receive the full pension after the effective date of this act shall continue to receive the full pension.
Provides for certain ex-spouses of retirants to receive a pension under PFRS.