S1959

SENATE, No. 1959

STATE OF NEW JERSEY

INTRODUCED MARCH 24, 1997

By Senators ZANE and GORMLEY

An Act concerning the retirement of Workers' Compensation judges and amending R.S.34:15-49, P.L.1938, c.295 and P.L. 1954, c. 84 and supplementing Titles 34 and 43 of the Revised Statutes.

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

1. R.S.34:15-49 is amended to read as follows:

34:15-49. a. The Division of Workers' Compensation shall have the exclusive original jurisdiction of all claims for workers' compensation benefits under this chapter. The judges of the Division of Workers' Compensation shall hereinafter be appointed on a bipartisan basis by the Governor, with the advice and consent of the Senate, to initial terms of three years at an annual salary, for the first year, in an amount equal to 80% of the annual salary of a Judge of the Superior Court. During the initial three-year term, each judge shall be subject to a program of evaluation developed by the Director of the Division of Workers' Compensation. Upon receipt of a satisfactory annual evaluation from the director, the annual salary of a nontenured judge shall be increased to 83 2/3% of the annual salary of a Judge of the Superior Court after one year; 86 2/3% of the annual salary of a Judge of the Superior Court after two years; and, after three years and upon tenure as provided pursuant to the provisions of this section, the annual salary of a tenured judge of compensation shall be 90% of the annual salary of a Judge of the Superior Court. Reappointment of a judge shall be by the Governor, with the advice and consent of the Senate. The director's evaluations shall be made available to the Senate Judiciary Committee if the candidate has been renominated by the Governor. Upon confirmation after the initial three-year term, a judge of the Division of Workers' Compensation shall have tenure, and shall serve during good behavior. All judges of compensation appointed prior to the effective date of P.L.1991, c.513 shall continue to have tenure and shall continue to serve during good behavior.

All judges of compensation shall be retired upon attaining the age of 70 years.

The annual salary of the director shall be 94% of the annual salary of a Judge of the Superior Court. The Chief Judge of Compensation shall be the Director of the Division of Workers' Compensation and may be known as the Director/Chief Judge of the division.

In addition to salary, a judge of compensation regularly assigned as an administrative supervisory judge of compensation by the director shall receive additional compensation of $2,500 per annum during the period of such assignment; and a judge of compensation regularly assigned as a supervising judge of compensation by the director shall receive additional compensation of $1,500 per annum during the period of such assignment.

Judges of compensation shall not engage in the practice of law, shall devote full time to their judicial duties, and shall have been licensed attorneys in the State of New Jersey for 10 years prior to their appointments. The director of the division shall have the same qualifications for appointment and be subject to the same restrictions as a judge of compensation.

b. An increase in an annual salary of a judge or the director under subsection a. of this section that results due to the increase in the salary of a Judge of the Superior Court provided in N.J.S.2B:2-4 as amended in section 1 of P.L.1995, c.424 (N.J.S.2B:2-4) shall not be granted until July 1, 1996.

(cf: P.L.1995, c.424, s.3)

2. Section 1 of P.L.1938, c.295 (C.10:3-1) is amended to read as follows:

1. In the selection of persons for employment in the service of the State, or of any county or municipality thereof, no appointing officer shall discriminate against any such applicant because such applicant has attained the age of at least 40 years, at the time of his said application for employment. Any provisions of law, executive order, rule or regulation to the contrary notwithstanding, no person other than a justice of the Supreme Court or a judge of the Superior Court pursuant to Article VI, Section VI, paragraph 3 of the Constitution of the State of New Jersey, or a judge of the Tax Court, or a judge of the Division of Workers' Compensation, or a member of the Division of State Police, employed in the service of the State, or of any county or municipality thereof, or a member of a police or fire department employed in the service of the State or of any county or municipality thereof, shall be required to retire upon the attainment of a particular age unless the public employer can show that the retirement age bears a manifest relationship to the employment in question or that the person in the service of the State, or of any county or municipality thereof, is unable to adequately perform his duties. A contract of tenure or similar arrangement providing for tenure shall not bar a public employer from showing that a retirement age bears a manifest relationship to the employment in question or that the person in the service of the State, or of any county or municipality thereof, is unable to adequately perform his duties. A person in the employ of the State, or of any county or municipality thereof, who is required to retire upon the attainment of a particular age in violation of this section shall be entitled to reinstatement with back pay and interest.

(cf: P.L.1985, c.73, s.1)

3. (New section) a. Subject to rules and regulations promulgated by the Director of the Division of Workers' Compensation, any judge of compensation who has retired on pension or retirement allowance may, with his consent, be recalled by the Division for temporary service as a judge of compensation. Temporary service under this subsection shall not be deemed to be employment in a position that makes the retired judge eligible to be a member of the Public Employees' Retirement System for the purposes of section 27 of P.L.1966, c.217 (C.43:15A-57.2) or any other provision of the "Public Employees' Retirement System Act" , P.L.1954, c.84 (C.43:15A-1 et seq.)

b. Upon such recall the retired judge shall have all the powers of a judge of compensation and shall be paid a per diem allowance fixed by the Director of the Division of Workers' Compensation in accordance with the division's rules and regulations, provided however that in no event shall he receive a salary which together with his pension or retirement allowance exceeds the current salary of a judge of compensation. In addition the recalled judge shall be reimbursed for reasonable expenses actually incurred by him in connection with his assignment and shall be provided with such facilities as may be required in the performance of his duties. Such per diem compensation and expenses shall be paid by the State.

c. Payment for services and expenses shall be made in the same manner as payment is made to judges of compensation.

d. The Director of the Division of Workers' Compensation shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) rules and regulations necessary to effectuate the provisions of this act.

4. Section 47 of P.L.1954, c.84 (C.43:15A-47) is amended to read as follows:

47. a. A member who has attained 60 years of age may retire on a service retirement allowance by filing with the retirement system a written application, duly attested, stating at which time subsequent to the execution and filing thereof he desires to be retired. The board of trustees shall retire him at the time specified or at such other time within 1 month after the date so specified as the board finds advisable.

b. Any member in service who attains 70 years of age shall be retired by the board of trustees on a service retirement allowance forthwith on the first day of the next calendar month, or at such time within 1 month thereafter as it finds advisable, except that an employee attaining 70 years of age other than a judge of the Division of Workers' Compensation may be continued in service on an annual basis upon written notice to the retirement system by the head of the State department or employer where the employee is employed.

(cf: P.L.1971, c.213, s.21)

5. (New section) The mandatory retirement provisions implemented pursuant to P.L. , c. (C. )(now pending before the Legislature as this bill) shall be inapplicable for one year after the effective date to any judge of the Division of Workers' Compensation who is at least 69 years old but less than 75 years old on the effective date, and shall be inapplicable for six months after the effective date to any judge of the Division of Workers' Compensation who has reached the age of 75 or greater on the effective date.

6. (New section) Notwithstanding the provisions of P.L. c. (C. )(now pending before the Legislature as this bill), any judge of the Division of Workers' Compensation who is 65 years old on the effective date of this act shall be permitted to continue his service as a judge of compensation until he attains 10 years of service under the the "Public Employees' Retirement System Act," P.L.1954, c.84 (C.43:15A-1et seq.).

7. (New section) a. Any judge of the Division of Workers' Compensation who shall have served at least 10 years as such judge and who has attained the age of 70 years is eligible to retire.

b. Any judge of the Division of Workers' Compensation who shall have served at least 15 years as such judge and who has attained the age of 65 years but not the age of 70 years is eligible to retire.

c. Any judge of the Division of Workers' Compensation who shall have served at least 20 years as such judge and who has attained the age of 60 years but not the age of 65 years is eligible to retire.

d. Any member of the retirement system eligible to retire under the provisions of this section, shall receive a retirement allowance consisting of an annuity which shall be the actuarial equivalent of his accumulated deductions together with regular interest, and a pension which, when added to the member's annuity, will provide a retirement allowance during the remainder of his life in the amount equal to sixty percent of his final salary.

e. Upon the receipt of proper proofs of the death of a judge of the Division of Workers' Compensation who has retired on a pension or retirement allowance based on age and service, pursuant to provisions of this section, there shall be paid to the member's beneficiary an amount equal to one-fourth of the final salary received by the member.

8. (New section) a. Any judge of the Division of Workers' Compensation who shall have served at least 5 years successively as such judge and shall have attained the age of 65 years or more while serving in such office and shall have served at least 15 years in the aggregate, including such service as a judge, or in office, position, or employment of this State or of a county, municipality, board of education or public agency of this State, is eligible to retire.

b. Any judge of the Division of Workers' Compensation, who shall have served at least 5 years successively as such judge and shall have attained the age of 60 years or more while serving in such office and shall have served at least 20 years in the aggregate, including such service as a judge, or in office, position, or employment of this State or of a county, municipality, board of education or public agency of this State, is eligible to retire.

c. Any member of the retirement system, eligible to retire under the provisions of this section, shall receive a retirement allowance consisting of an annuity which shall be the actuarial equivalent of his accumulated deductions together with regular interest, and a pension which, when added to the member's annuity, will provide a retirement allowance during the remainder of his life in an amount equal to forty percent of his final salary.

d. Upon the receipt of proper proofs of the death of a judge of the Division of Workers' Compensation who has retired on a pension or retirement allowance based on age and service, pursuant to provisions of this section, there shall be paid to the member's beneficiary an amount equal to one-fourth of the final salary received by the member.

9. (New section) a. Any judge of the Division of Workers' Compensation who shall have attained the age of 60 years or more while serving as such judge is eligible to retire. He shall receive an annuity which is the actuarial equivalent of his accumulated deductions together with regular interest, and a pension which, when added to the member's annuity, will provide a retirement allowance in the amount of 2% of his final salary multiplied by his number of years of judicial service up to 25 plus 1% of his final salary multiplied by his number of years of service over 25.

b. Upon the receipt of proper proofs of the death of a judge of the Division of Workers' Compensation who has retired on a pension or retirement allowance based on age and service, pursuant to provisions of this section, there shall be paid to the member's beneficiary an amount equal to one-fourth of the final salary received by the member.

10. This act shall take effect immediately.

STATEMENT

This bill would provide that judges of the Division of Workers' Compensation be required to retire at age 70.

This bill would end a disparity in current law, which subjects judges of the Superior Court, justices of the Supreme Court and judges of the Tax Court to mandatory retirement at age 70, but which contains no such requirement for workers' compensation judges.

The bill gives judges who are between the ages of 69 and 74 an additional year to serve, if they choose, before the mandatory retirement provision will affect them, and gives judges who are age 75 or older an additional six months.

This bill would also supplement the "Public Employees' Retirement System Act," N.J.S.A.43:15A-1 et seq. to allow any judge who is at least 65 years old on the effective date of the act but who does not have 10 years of service to continue his service until he attains 10 years of service in the retirement system.

In addition, this bill establishes a pension retirement system for judges of compensation which would take into consideration the age of the judge, the number of years of service as a judge and the total number of years of public service.

Under section 7 of the bill a judge of compensation would receive a retirement allowance in the amount equal to sixty percent of his final salary if : (1) the judge has served 10 years as a judge of compensation and has attained the age of 70; or (2) the judge has served 15 years as a judge of compensation and has attained the age of 65 but not the age of 70; or (3) the judge has served 20 years as a judge of compensation and has attained the age of 60 but not the age of 65.

Section 8 of the bill provides that a judge would receive a retirement allowance in the amount equal to forty percent of his final salary if : (1) the judge has served at least 5 years successively as a workers compensation judge, has attained the age of 65 and has served at least 15 years in the aggregate, including service as a workers compensation judge, or in office, position, or employment of this State or of a county, municipality, board of education or public agency of this State; or (2) the judge has served at least 5 years successively as a workers compensation judge, has attained the age of 60 or more while serving as a workers compensation judge and has served at least 20 years in the aggregate, including service as a judge of compensation, or in office, position, or employment of this State or of a county, municipality, board of education or public agency of this State.

Section 9 of the bill provides that any judge of compensation who has attained the age of 60 or more while serving as a judge of compensation is eligible to retire and receive a retirement allowance in the amount of 2% of his final salary multiplied by his number of years of judicial service up to 25 plus 1% of his final salary multiplied by his number of years of service over 25.

The bill also provides payment to the judge's beneficiary an amount equal to one-fourth of the final salary received by the member.

Requires mandatory retirement at age 70 for judges of the Division of Workers' Compensation; amends Public Employees' Retirement System.