Bill Text: NJ A1609 | 2010-2011 | Regular Session | Introduced
Bill Title: Revises membership and duties of Pension and Health Benefits Review Commission.
Spectrum: Moderate Partisan Bill (Republican 5-1)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly State Government Committee [A1609 Detail]
Download: New_Jersey-2010-A1609-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman DECLAN J. O'SCANLON, JR.
District 12 (Mercer and Monmouth)
Co-Sponsored by:
Assemblymen Biondi, Wolfe, Holzapfel, Rudder and Assemblywoman Addiego
SYNOPSIS
Revises membership and duties of Pension and Health Benefits Review Commission.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning the Pension and Health Benefits Review Commission and amending P.L.1991, c.382.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1991, c.382 (C.52:9HH-1) is amended to read as follows:
1. There is hereby established a Pension and Health Benefits Review Commission. The commission shall consist of [10] five members: [the State Treasurer and three other members of the Executive Branch, who shall be designated by the Governor and who shall serve at the Governor's pleasure; two] one public [members] member to be appointed by the President of the Senate, [no more than one of whom shall be of the same political party]; one public member to be appointed by the Minority Leader of the Senate; [two] one public [members] member to be appointed by the Speaker of the General Assembly[, no more than one of whom shall be of the same political party]; one public member to be appointed by the Minority Leader of the General Assembly; and [two] one public [members, no more than one of whom shall be of the same political party,] member to be appointed by the Governor with the advice and consent of the Senate. The State Treasurer shall serve as a non-voting, ex-officio member of the commission.
The members of the commission shall have training and experience in employee compensation and benefit matters from the fields of business, law, academia, labor or any other relevant field. The appointments shall be coordinated to the greatest extent possible in order to achieve a balance of representation from various fields of knowledge and to achieve a diversified group with a high level of education and practical experience. No active or retired public employee or any person who holds or has held elective public office shall be eligible for appointment as a member of the commission. No person with a direct or indirect personal or financial interest in public employee pensions or retirement allowances or health care benefits provided to active or retired public employees shall be eligible for appointment as a member of the commission.
[Public members] The public member appointed by the Governor shall serve for a term of four years and until [their respective successors are] the appointed member's successor is appointed and qualified[, except that of the public members first appointed one shall serve for a term of two years and one shall serve for a term of four years]. Public members appointed by the President of the Senate [or] , the Minority Leader of the Senate, the Speaker of the General Assembly or the Minority Leader of the General Assembly shall serve during the two-year legislative term in which the appointment is made and until their respective successors are appointed and qualified. The terms of office of the members serving on the effective date of P.L. , c. (pending before the Legislature as this bill) are terminated. Any such member eligible to serve on the commission on the effective date of this act may be reappointed. Any vacancy in the membership of the commission shall be filled for the balance of the unexpired term in the same manner as the original appointment was made.
A chairman of the commission shall be [designated by the Governor from among its public members and shall serve at the pleasure of the Governor] elected by the members of the commission and shall serve for a term of two years from the date of election.
Members of the commission shall serve without compensation but shall be entitled to reimbursement for expenses actually incurred in the performance of their duties.
(cf: P.L.1991, c.382, s.1)
2. Section 2 of P.L.1991, c.382 (C.52:9HH-2) is amended to read as follows:
2. a. It shall be the duty of the commission to review any bill, joint resolution or concurrent resolution introduced in either House of the Legislature which establishes or modifies pension benefits or health benefits for public employees in this State. Such a review shall include, but not be limited to, an analysis of the bill's or resolution's fiscal impact on the retirement system and on the public employer, any comments upon or recommendations concerning the legislation, and any alternatives to the legislation which the commission may wish to suggest.
b. Not later than the 20th day after the date of introduction of any bill or resolution in either House of the Legislature, the Legislative Budget and Finance Officer shall review it in order to determine whether the bill or resolution constitutes pension or health benefits legislation. If, on the basis of that review, the Legislative Budget and Finance Officer determines that the bill or resolution constitutes such legislation, that officer shall promptly give written notice of that determination to the commission, the presiding officer of the House in which the bill or resolution was introduced and the chairman of the standing reference committee of that House to which the bill or resolution may have been referred. Not later than the 45th day after the date of introduction of any bill or resolution in either House of the Legislature which the Legislative Budget and Finance Officer has determined constitutes pension or health benefits legislation, the commission shall complete its review and provide its comments and recommendations in writing to the presiding officer of the House in which the bill or resolution was introduced and to the chairman of the standing reference committee of that House to which the bill or resolution may have been referred. If the commission requests an extension prior to the 45th day after the date of introduction of a bill or resolution, the presiding officer of the House in which the bill or resolution was introduced may grant an extension for the commission to complete its review of the bill or resolution. The House or committee shall not consider or vote upon the bill or resolution until either the commission completes its review and provides its comments and recommendations in writing to the presiding officer and the chairman, or the 45th day after the date of introduction of the bill or resolution, or the designated day in the case of an extension. If the presiding officer of the House in which the bill or resolution was introduced determines that the bill or resolution is an urgent matter, he shall so notify in writing the commission and the chairman of the standing reference committee to which the bill or resolution may have been referred, and the House or committee may consider and vote upon the bill or resolution as soon as practicable.
c. The commission shall have the following additional duties:
(1) The commission shall present in writing an analysis of the revenues and costs of all legislation reviewed pursuant to subsection a. of this section and actions of the State Health Benefits Commission. This required presentation shall be made in a public meeting subject to the Open Public Meetings Acts, P.L.1975, c.231 (C.10:4-6 et seq.), prior to the adoption of the legislation or actions. The analysis shall contain the estimated distributional impact on employees across different income levels and years of service.
(2) The commission shall undertake at least once every three years a comprehensive assessment of all the benefit programs offered to State employees and participants in State benefit plans or programs to evaluate the relative competitiveness of these benefits in relation to major private New Jersey employers and to states surrounding New Jersey.
(cf: P.L.1991, c.382, s.2)
3. Section 3 of P.L.1991, c.382 (C.52:9HH-3) is amended to read as follows:
3. a. The commission shall be entitled to the assistance and services of the employees of any State, county or municipal department, board, bureau, commission or agency as it may require and as may be available to it for these purposes, and to employ stenographic and clerical assistants and incur traveling and other miscellaneous expenses as necessary, to perform its duties, and within the limits of funds appropriated or otherwise made available to it for these purposes.
b. The Division of Pensions and Benefits in the Department of the Treasury shall assist the commission in the performance of its duties. The commission may make use of existing studies, data or other materials in the possession of the division and may request the assistance and services of the division's employees. Prior to the commission's consideration of any bill, a fiscal estimate for it shall be prepared by the division and forwarded to the commission. The estimate shall: (1) include an estimate of the cost of the bill and the revenue sources proposed to cover the costs, certifying that the estimates were developed in accordance with generally accepted actuarial principles; (2) determine the constituency that is most likely to be affected by the bill; and (3) estimate the distributional impacts of the bill across different income levels and years of service.
c. The employees of any State agency or political subdivision of the State may serve at the request of the commission upon any advisory committee which the commission may create and these employees may serve upon these committees without forfeiture of office or employment and with no loss or diminution in the compensation, status, rights and privileges which they otherwise enjoy.
(cf: P.L.1991, c.382, s.3)
4. This act shall take effect on the first day of the third month following enactment.
STATEMENT
This bill revises the membership and duties of the Pension and Health Benefits Review Commission.
Specifically, the bill:
1) revises the appointing authority of commission members so that one each is appointed by the Governor, the Senate President, the Senate Minority Leader, the Speaker of the General Assembly and the Assembly Minority Leader, thus providing a greater balance of political party affiliation among voting members of the commission;
2) requires appointees to have an extensive background and experience with employee compensation and benefits in the fields of business, legal, academia and labor, or any other relevant field;
3) bars anyone with a conflict of interest from serving as a voting member by requiring all members to be individuals who do not have a direct or indirect personal or financial interest in public employee pensions or health care benefits;
4) requires the Division of Pensions and Benefits, prior to the commission's consideration of any bill, to prepare and forward to the commission fiscal estimates for such bills and these estimates must: (a) include an estimate of the cost of the bill and the revenue sources proposed to cover the costs, certifying that the estimates were developed in accordance with generally accepted actuarial principles; (b) determine the constituency that is most likely to be affected by the bill; and (c) estimate the distributional impacts of the bill across different income levels and years of service;
5) requires the commission to present in writing the complete terms and an analysis of the revenues and costs of all legislation reviewed pursuant current law and actions of the State Health Benefits Commission; and
6) requires the commission to undertake at least once every three years a comprehensive assessment of all the benefit programs offered to State employees and participants in State benefits plans or programs to evaluate the relative competitiveness of these benefits in relation to major private New Jersey employers and to states surrounding New Jersey.
The bill's provisions are based on recommendations included in the "Report of the Benefits Review Task Force," issued on December 1, 2005, and other information received by the sponsor in his capacity as a member of the Joint Legislative Committee on Public Employee Benefits Reform.
