SENATE, No. 2236
STATE OF NEW JERSEY
INTRODUCED NOVEMBER 17, 1997
By Senator INVERSO
An Act concerning membership in the Public Employees' Retirement System, amending P.L.1954, c.84, and supplementing Title 40A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. If a local government agency responsible for the performance of water management or wastewater management services intends to enter into an agreement with a nongovernmental entity for the performance by that entity of those services, and if the agreement is to include a provision for the continued employment of the employees of that agency, the agency may include as specifications in the agreement, or the nongovernmental entity may propose in the agreement, that the employees continued in employment who are members of the Public Employees' Retirement System created by P.L.1954, c.84 (C.43:15A-1 et seq.) shall continue to be members of the retirement system, and that the entity shall assume all of the responsibilities and costs imposed by the retirement system on employers.
b. If a nongovernmental entity enters into an agreement with a local government agency for the performance of water management or wastewater management services that contains the provisions of subsection a. hereof:
(1) the employees affected shall continue to be members of the retirement system but shall not be deemed to be employees of the local government agency; and
(2) the nongovernmental entity shall assume all of the responsibilities and costs imposed by the retirement system on employers.
c. As used in this section:
"local government agency" means the governing body of a county or municipality, an agency of a county or municipal government that is empowered to enter into contracts or agreements, or an authority; and
"authority" means a body, public and corporate, created by one or more counties or municipalities, pursuant to any law authorizing that creation, that is empowered to enter into contracts or agreements.
2. Section 7 of P.L.1954, c.84 (C.43:15A-7) is amended to read as follows:
7. There is hereby established the Public Employees' Retirement System of New Jersey in the Division of Pensions and Benefits of the Department of the Treasury. The membership of the retirement system shall include:
a. The members of the former "State Employees' Retirement System of New Jersey" enrolled as such as of December 30, 1954, who shall not have claimed for refund their accumulated deductions in said system as provided in this section;
b. (1) Any person becoming an employee of the State or other employer after January 2, 1955 and every veteran, other than a retired member who returns to service pursuant to subsection b. of section 27 of P.L.1966, c.217 (C.43:15A-57.2) and other than those whose appointments are seasonal, becoming an employee of the State or other employer after such date, including a temporary employee with at least one year's continuous service; [and]
(2) any employee of a nongovernmental entity who is an employee of that entity pursuant to the provisions of section 1 of P.L. , c. (now pending before the Legislature as this bill); and
c. Every employee veteran in the employ of the State or other employer on January 2, 1955, who is not a member of any retirement system supported wholly or partly by the State.
d. Membership in the retirement system shall be optional for elected officials other than veterans, and for school crossing guards, who having become eligible for benefits under other pension systems are so employed on a part-time basis. Any such part-time school crossing guard who is eligible for benefits under any other pension system and who was hired as a part-time school crossing guard prior to March 4, 1976, may at any time terminate his membership in the retirement system by making an application in writing to the board of trustees of the retirement system. Upon receiving such application, the board of trustees shall terminate his enrollment in the system and direct the employer to cease accepting contributions from the member or deducting from the compensation paid to the member. State employees who become members of any other retirement system supported wholly or partly by the State as a condition of employment shall not be eligible for membership in this retirement system. Notwithstanding any other law to the contrary, all other persons accepting employment in the service of the State shall be required to enroll in the retirement system as a condition of their employment, regardless of age. No person in employment, office or position, for which the annual salary or remuneration is fixed at less than $1,500.00, shall be eligible to become a member of the retirement system.
e. Membership of any person in the retirement system shall cease if he shall discontinue his service for more than two consecutive years.
f. The accumulated deductions of the members of the former "State Employees' Retirement System" which have been set aside in a trust fund designated as Fund A as provided in section 5 of this act and which have not been claimed for refund prior to February 1, 1955 shall be transferred from said Fund A to the Annuity Savings Fund of the Retirement System, provided for in section 25 of this act. Each member whose accumulated deductions are so transferred shall receive the same prior service credit, pension credit, and membership credit in the retirement system as he previously had in the former "State Employees' Retirement System" and shall have such accumulated deductions credited to his individual account in the Annuity Savings Fund. Any outstanding obligations of such member shall be continued.
g. Any school crossing guard electing to terminate his membership in the retirement system pursuant to subsection d. of this section shall, upon his request, receive a refund of his accumulated deductions as of the date of his appointment to the position of school crossing guard. Such refund of contributions shall serve as a waiver of all benefits payable to the employee, to his dependent or dependents, or to any of his beneficiaries under the retirement system.
h. A temporary employee who is employed under the federal Job Training Partnership Act, Pub.L.97-300 (29 U.S.C.s.1501) shall not be eligible for membership in the system. Membership for temporary employees employed under the federal Job Training Partnership Act, Pub.L.97-300 (29 U.S.C.s.1501) who are in the system on September 19, 1986 shall be terminated, and affected employees shall receive a refund of their accumulated deductions as of the date of commencement of employment in a federal Job Training Partnership Act program. Such refund of contributions shall serve as a waiver of all benefits payable to the employee, to his dependent or dependents, or to any of his beneficiaries under the retirement system.
i. Membership in the retirement system shall be optional for a special service employee who is employed under the federal Older American Community Service Employment Act, Pub.L.94-135 (42 U.S.C.s.3056). Any special service employee employed under the federal Older American Community Service Employment Act, Pub.L.94-135 (42 U.S.C.s.3056), who is in the retirement system on [the effective date of this act, P.L.1996, c.139,] December 20, 1996 may terminate membership in the retirement system by making an application in writing to the board of trustees of the retirement system. Upon receiving the application, the board shall terminate enrollment in the system and the member shall receive a refund of accumulated deductions as of the date of commencement of employment in a federal Older American Community Service Employment Act program. This refund of contributions shall serve as a waiver of all benefits payable to the employee, to any dependent or dependents, or to any beneficiary under the retirement system.
(cf: P.L.1997, c.23, s.1)
3. This act shall take effect immediately.
STATEMENT
This bill is intended to address the "privatizing" of water management and wastewater management services by local government agencies when public employees are continued as employees of the nongovernmental entities undertaking to perform those services.
The bill provides that if a local government agency responsible for the performance of water management and wastewater management services intends to enter into an agreement with a nongovernmental entity for the performance of those services by that entity, and if the agreement is to include a provision for the continued employment of the employees of that agency, the agency may include as specifications in the agreement, or the nongovernmental entity may propose in the agreement, that the employees continued in employment who are members of the Public Employees' Retirement System shall continue to be members of the retirement system, and that the entity shall assume all of the responsibilities and costs imposed by the retirement system on employers.
The bill provides explicitly that if a nongovernmental entity enters into such an agreement with a local government agency, the employees affected shall continue to be members of the retirement system but shall not be deemed to be local government employees, and that the employer shall assume all of the responsibilities and costs imposed by the retirement system on employers.
Provides that, if local government agency hires private entity to perform water and wastewater management services, agency employees continued in employment with entity may retain PERS membership.