SENATE, No. 1600

STATE OF NEW JERSEY

INTRODUCED OCTOBER 7, 1996

By Senator KENNY

An Act concerning certain members of the Police and Firemen's Retirement System of New Jersey laid off from employment with a county police department and supplementing P.L.1944, c.255 (C.43:16A-1 et seq.).

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. If, on or after January 1, 1996, any county police department was or shall be terminated as an agency in which members of the retirement system were or are employed, a member of the retirement system with at least 20 but less than 25 years of creditable service who was or shall be laid off from employment with that department at the time of that termination or at any time during the twelve-month period preceding that termination, and who applied or shall apply for retirement under the retirement system not later than the 90th day following the effective date of this act or the date of layoff, whichever is later, shall, beginning on the first day of the second calendar month next following the effective date of this act or the first day of the calendar month following the effective date of retirement, whichever is later, be entitled to receive, in lieu of the return of the member's contributions under section 11 of P.L.1944, c.255 (C.43:16A-11), the deferred retirement allowance provided under section 17 or P.L.1964, c.241 (C.43:16A-11.2), or any other benefit payable to the person as a former member of the retirement system, a retirement allowance in an amount equal to the amount of the "special" retirement allowance to which the person would have been entitled under section 16 of P.L.1964, c.241 (C.43:16A-11.1) if the person had established 25 years of creditable service in the retirement system, multiplied by the fractional amount obtained by dividing by 25 the number of years of creditable service that the person actually established in the retirement system.

    2. This act shall take effect immediately.

STATEMENT

    This bill provides that, if a member of the Police and Firemen's Retirement System (PFRS) (1) was or shall be laid off from employment with a county police department upon, or during the 12 months preceding, the termination of the agency on or after January 1, 1996 as an employer of PFRS members, (2) had established or shall have established at least 20 but less than 25 years of creditable service in PFRS at the time of layoff, and (3) applied or shall apply for retirement under PFRS not later than the 90th day following the date on which the bill takes effect as law or the date of layoff, whichever is later, that person shall, beginning on the first day of the second calendar month next following the effective date or the first day of the calendar month following the effective date of retirement, whichever is later, be eligible to receive, in lieu of any other benefit to which the person is otherwise entitled under PFRS, a retirement allowance equal in amount to the "special" retirement allowance for which the person would have been eligible if the person's PFRS service had totaled 25 years, reduced proportionally to reflect the extent to which the length of the person's PFRS service was less than 25 years.

Allows PFRS member with at least 20 but less than 25 years' credit laid off due to closing of county police department to receive pro rata special retirement allowance.