Bill Text: NJ A1847 | 2014-2015 | Regular Session | Introduced
Bill Title: Limits leave and supplemental compensation benefits for school district superintendents, assistant superintendents, and school business administrators; provides procedures and penalties for enforcement of TPAF provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-01-16 - Introduced, Referred to Assembly Labor Committee [A1847 Detail]
Download: New_Jersey-2014-A1847-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Assemblywoman PAMELA R. LAMPITT
District 6 (Burlington and Camden)
SYNOPSIS
Limits leave and supplemental compensation benefits for school district superintendents, assistant superintendents, and school business administrators; provides procedures and penalties for enforcement of TPAF provisions.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning compensation and leave benefits for school district superintendents, assistant superintendents, and school business administrators and the administration of the Teachers' Pension and Annuity Fund, and amending and supplementing various parts of the statutory law.
Be It Enacted by the Senate and `General Assembly of the State of New Jersey:
1. N.J.S.18A:66-32 is amended to read as follows:
18A:66-32. Upon the employment of a person to whom this article may apply, his employer shall inform him of his duties and obligations under this article as a condition of his employment; the employer shall notify the retirement system of such appointment within 10 days thereafter; it shall keep such records and from time to time furnish such information as the retirement system may require; deduct the proportion of salary and extra salary deductions as certified by the retirement system, transfer each of the amounts so deducted to the retirement system; and shall transmit to the retirement system monthly or at such intervals as the system designates a detailed statement of all amounts so paid. If payment in full, representing the monthly or biweekly transmittal and report of salary deductions, is not made within 15 days of the due date established by the retirement system, interest at the rate of 6% per annum shall commence to run against the total transmittal of salary deductions for the period on the first day after such fifteenth day. Any failure on the part of the employer to comply with the provisions of this section shall constitute a default, and the State Department of Education may withhold school moneys from the district until the default is made good.
Where an employer fails to notify the retirement system of a teacher's employment and more than one year has elapsed from the compulsory enrollment date of such teacher, the employer shall be liable for the payment, with interest of 6% per annum, to the contingent reserve fund which would otherwise have been required of, and timely paid, by the state.
A board of education, as an employer, shall certify annually in writing to the board of trustees of the retirement system that the amount of salary from which deductions have been taken for a superintendent, assistant superintendent, and school business administrator complies with the definition of compensation as set forth in N.J.S.18A:66-2 and as further defined in the rules or regulations of the retirement system, and that a supplemental payment, bonus, reimbursement or other remuneration not permitted by the retirement system to be included in the amount of salary for deduction purposes has not been included. Such a certification also shall be required prior to the retirement of a superintendent, assistant superintendent, or school business administrator.
The appropriate officer or employee of a board of education shall certify annually in writing to the board of trustees of the retirement system that the records and information maintained by the employer in accordance with this section and those submitted to the retirement system are accurate, valid, complete and in compliance with applicable statutes, rules and regulations.
(cf: P.L.1968, c.228, s.3)
2. N.J.S.18A:66-57 is amended to read as follows:
18A:66-57. a. The board shall elect annually from its membership a chairman and may also elect a vice chairman, who shall have all the power and authority of the chairman in the event of the death, absence or disability of the chairman. The actuary of the fund shall be selected by the Retirement Systems Actuary Selection Committee established by P.L.1992, c.125.
The actuary shall be the technical adviser of the board and the committee on matters regarding the operation of the funds created by the provisions of this article and shall perform such other duties as are required in connection therewith.
The Attorney General shall be the legal adviser of the retirement system, except that if the Attorney General determines that a conflict of interest would affect the ability of the Attorney General to represent the board or the committee on a matter affecting the retirement system, the board may select and employ legal counsel to advise and represent the board or the committee on that matter.
The chief or assistant chief of the office of secretarial services of the Division of Pensions and Benefits of the State Department of the Treasury, shall be the secretary of the board. The chief and assistant chief of the office of secretarial services shall be in the competitive division of the State classified service. The secretary presently in office shall hold the position as chief of the office of secretarial services subject to all of the provisions of Title 11 of the Revised Statutes and shall not be removed from said office except in the manner provided under the provisions of said title relating to permanent employees in the competitive division of the State classified service. The board of trustees shall select its secretary from among the eligible candidates.
b. The Division of Pensions and Benefits shall provide training to members of boards of education, and such officers and employees of those boards who are responsible for compliance with retirement system matters, on the definition of compensation as set forth in N.J.S.18A:66-2 and as further defined in the rules or regulations of the retirement system, and on the supplemental payments, bonuses, reimbursements or other remunerations not permitted by the retirement system to be included in the amount of salary for the purpose of deductions taken pursuant to N.J.S.18A:66-32. The division shall develop the training program required. The board of trustees shall approve the program's form and content and determine the time when board of education members and officers and employees of such boards shall be required to complete the training. The program shall be provided by division employees or by such other persons as may be designated by the division. Members of a board of education, as an employer, and appropriate officers and employees of such a board shall be required to attend the training and shall submit to the division a written acknowledgement of such attendance.
c. In furtherance of the duties of the board of trustees and the division with regard to the proper administration of the retirement system, the board of trustees may compel at a specific time and place, by subpoena, the appearance and sworn testimony of any person whom the board of trustees reasonably believes may be able to give information relating to a matter under review or investigation. For this purpose, the board is empowered to administer oaths and examine witnesses under oath, and compel any person to produce at a specific time and place, by subpoena, any documents, books, records, papers, objects or other evidence that the board reasonably believes may relate to a matter under review or investigation.
If any person to whom such subpoena is issued fails to appear or, having appeared, refuses to give testimony, or fails to produce the books, papers or other documents required, the board of trustees may apply to the Superior Court and the court may order the person to appear and give testimony or produce the books, papers or other documents, as applicable. A person failing to obey the court's order may be punished by the court as for contempt.
A person compelled by the board of trustees to appear and provide sworn testimony shall have the right to be accompanied by counsel, who shall be permitted to advise the witness of his or her rights. A witness compelled to appear and testify shall be accorded all due process rights.
(cf: P.L.2011, c.78, s.6)
3. N.J.S.18A:66-64 is amended to read as follows:
18A:66-64. a. A person who knowingly makes a false statement, or falsifies or permits to be falsified any record of the retirement system, including the amount of salary subject to deductions for the purposes of the retirement system, in an attempt to defraud the system as a result of such act shall be guilty of a [misdemeanor] crime of the fourth degree.
b. A person who knowingly violates the provisions of N.J.S.18A:66-1 et seq. or related rules and regulations of the retirement system shall be subject to a civil penalty of $1,000 for each violation, $2,500 for a second violation that occurs within three years of an initial violation, and $5,000 for further violations that occur within five years of an initial violation. This penalty shall be collected and enforced in proceedings in accordance with the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), and the rules of court governing actions for the collection of civil penalties. The Superior Court shall have jurisdiction of proceedings for the collection and enforcement of the penalty imposed by this section.
c. The board of trustees of the retirement system may direct the actuary of the system to determine, if possible, the unfunded liability to the retirement system resulting from a violation by an employer of the provisions of N.J.S.18A:66-1 et seq. and the rules and regulations related thereto. The amount of this unfunded liability shall be the responsibility of the employer and shall be paid by the employer to the retirement system under such terms and conditions as the board of trustees shall direct.
(cf: N.J.S.18A:66-64)
4. Section 4 of P.L.1979, c.391 (C.18A:16-15) is amended to read as follows:
4. a. Any contract or contracts permitted under this act shall contain limitations, exclusions or exceptions so as to avoid duplication of benefits or services otherwise available pursuant to accidental death and dismemberment, hospitalization, medical, surgical, major medical expense or health and accident coverage under any other law of this State or the coverage afforded under the laws of the United States, such as the Federal Medicare Program, and at the option of the local board of education and the carrier, group insurance or any other arrangement of coverage for individuals in a group, whether on an insured or uninsured basis.
Any contract permitted under this act may condition the eligibility of any employee upon satisfying a waiting period stated in the contract.
b. A board of education
shall not provide an incentive or pay any supplemental compensation to a superintendent,
assistant superintendent, or school business administrator when a superintendent,
assistant superintendent, or school business administrator declines or waives
healthcare benefits coverage under any contract or program provided by the
board of education or otherwise made available to a superintendent, assistant
superintendent, or school business administrator by the board. This subsection
shall not be construed as impairing the obligations set forth in an individual
contract of employment in effect on the
effective date of P.L. , c. (pending before the Legislature as this bill).
(cf: P.L.1979, c.391, s.4)
5. N.J.S.18A:30-2 is amended to read as follows:
18A:30-2. a. All persons holding any office, position, or employment in all local school districts, regional school districts or county vocational schools of the state who are steadily employed by the board of education or who are protected by tenure in their office, position, or employment under the provisions of this or any other law, except persons in the classified service of the civil service under Title 11, Civil Service, of the Revised Statutes, shall be allowed sick leave with full pay for a minimum of 10 school days in any school year.
b. The allowed sick leave with full pay provided to a superintendent, assistant superintendent, and school business administrator by a board of education shall not exceed 15 working days in a calendar year. This subsection shall not be construed as impairing the obligations set forth in an individual contract of employment in effect on the effective date of P.L. , c. (pending before the Legislature as this bill).
(cf: N.J.S.18A:30-2)
6. N.J.S.18A:30-3 is amended to read as follows:
18A:30-3. a. If any such person requires in any school year less than the specified number of days of sick leave with pay allowed, all days of such minimum sick leave not utilized that year shall be accumulative to be used for additional sick leave as needed in subsequent years.
b. If a board of education provides to a superintendent, assistant superintendent, or school business administrator supplemental compensation upon retirement based upon accumulated unused sick leave, that supplemental compensation shall be computed at the rate of one-half of the eligible daily rate of pay of the superintendent, assistant superintendent, or school business administrator for each day of accumulated unused sick leave based upon the annual compensation received during the last year of employment prior to the effective date of retirement from a State-administered retirement system, but the supplemental compensation shall not exceed $15,000. A board of education shall not provide supplemental compensation to a superintendent, assistant superintendent, or school business administrator upon termination of employment for any reason other than retirement. This subsection shall not be construed as impairing the obligations set forth in an individual contract of employment in effect on the effective date of P.L. , c. (pending before the Legislature as this bill). The supplemental compensation provided for accumulated unused sick leave shall in no way affect, increase or decrease any pension or retirement benefits under any other statute. This subsection shall be construed in conjunction with section 44 of P.L.2007, c.92 (C.18A:30-3.5).
(cf: N.J.S.18A:30-3)
7. N.J.S.18A:30-7 is amended to read as follows:
18A:30-7. Nothing in this chapter shall affect the right of the board of education to fix either by rule or by individual consideration, the payment of salary in cases of absence not constituting sick leave except in the case of a superintendent, assistant superintendent, and school business administrator, or to grant sick leave over and above the minimum sick leave as defined in this chapter except in the case of a superintendent, assistant superintendent, and school business administrator or allowing days to accumulate over and above [those] the minimum provided for in section 18A:30-2, except that no person shall be allowed to increase his total accumulation by more than 15 days in any one year.
(cf: N.J.S.18A:30-7)
8. (New section) a. (1) Vacation leave provided by a board of education to a superintendent, assistant superintendent, or school business administrator shall not exceed 25 working days in a calendar year, regardless of years of continuous service with that or any other employer. Vacation leave not used in a given calendar year by a superintendent, assistant superintendent, or school business administrator shall accumulate and shall carry over to the next succeeding calendar year only. This section shall be construed in conjunction with section 46 of P.L.2007, c.92 (C.18A:30-9).
(2) If a board of education provides to a superintendent, assistant superintendent, or school business administrator supplemental compensation upon retirement based upon accumulated unused vacation leave, that supplemental compensation shall be computed at the daily rate of pay of the superintendent, assistant superintendent, or school business administrator for each day of accumulated unused vacation leave, based upon the annual compensation received during the last year of employment prior to the effective date of retirement from a State-administered retirement system. A board of education shall not provide supplemental compensation to a superintendent, assistant superintendent, or school business administrator upon termination of employment for any reason other than retirement. The supplemental compensation provided for accumulated unused vacation leave shall in no way affect, increase or decrease any pension or retirement benefits under any other statute.
b. If a board of education provides to a superintendent, assistant superintendent, or school business administrator leave other than sick leave or vacation leave, including leave for personal reasons or for religious observances of a superintendent, assistant superintendent or school business administrator, such leave shall be considered administrative leave and not more than three working days of administrative leave in a calendar year shall be provided. Administrative leave shall not be cumulative and any administrative leave unused by a superintendent, assistant superintendent, or school business administrator at the end of a calendar year shall be cancelled.
c. A board of education shall not provide to a superintendent, assistant superintendent, or school business administrator overtime compensation or compensatory time off for overtime.
d. This section shall not be construed as impairing the obligations set forth in an individual contract of employment in effect on the effective date of P.L. , c. (pending before the Legislature as this bill).
9. This act shall take effect immediately.
STATEMENT
This bill implements several of the recommendations of the March 2006 report of the State Commission of Investigation entitled "Taxpayers Beware: What You Don't Know Can Cost You. An Inquiry Into Questionable and Hidden Compensation for Public School Administrators." The report states that "significant weaknesses in the statutory and regulatory structure governing public employee benefits in New Jersey enables public employees below the State level of government to obtain lucrative packages involving sick and vacation leave. This investigation revealed the widespread practice by school districts granting excessive leave and allowing top administrators, at taxpayer expense, to cash in substantial amounts of accumulated sick and vacation time annually and at retirement." In addition, the investigation "found a pattern in which questionable or patently improper steps have been taken to provide public school superintendents and other administrators with inflated or overly generous pensions." The recommendations of the report seek to place controls and oversight over these matters.
Specifically, the bill limits a superintendent, assistant superintendent, and school business administrator employed by a board of education to:
not more than 15 working days of paid sick leave in a calendar year;
supplemental compensation for accumulated unused sick leave of not more than $15,000 only at time of retirement;
not more than 25 working days of paid vacation leave in a calendar year;
a carry forward of only one year's worth of unused vacation leave;
supplemental compensation for accumulated unused vacation leave only at time of retirement; and
not more than three working days of administrative leave for personal reasons in a calendar year.
The bill prohibits a board of education from paying a superintendent, assistant superintendent, or school business administrator for overtime or providing compensatory time off for overtime.
The provisions of this bill would not impair the obligations set forth in an individual contract of employment in effect on the date of enactment of this bill.
In addition, the bill provides procedures and penalties for enforcement of the statutes establishing the Teachers' Pension and Annuity Fund (TPAF) and related rules and regulations.
A board of education, as an employer, would have to certify annually to the board of trustees of the retirement system that the amount of salary from which deductions have been taken for a superintendent, assistant superintendent, and school business administrator complies with the definition of compensation in the TPAF law and related rules or regulations and that a supplemental payment, bonus, reimbursement or other remuneration not permitted by the retirement system to be included in the amount of salary for deduction purposes has not been included. The certification would also be required prior to the retirement of a superintendent, assistant superintendent, or school business administrator.
The appropriate officer or employee of a board of education would have to certify annually to the board of trustees of the retirement system that the records and information maintained in accordance with the TPAF law and those submitted to the retirement system are accurate, valid, complete and in compliance with applicable statutes, rules and regulations.
The Division of Pensions and Benefits would have to provide training to members of boards of education, and such officers and employees of those boards who are responsible for compliance with TPAF matters, on the definition of compensation as set forth in the TPAF law and related rules or regulations. Members of a board of education and appropriate officers and employees of such a board would be required to attend the training and submit to the division a written acknowledgement of such attendance.
The board of trustees of the retirement system would be granted subpoena powers to compel the appearance and sworn testimony of any person whom the board of trustees reasonably believes may be able to give information relating to a matter under review or investigation.
A person who knowingly violates the provisions of the TPAF law or related rules and regulations would be subject to a civil penalty of $1,000 for each violation, $2,500 for a second violation that occurs within three years of an initial violation, and $5,000 for further violations that occur within five years of an initial violation. This penalty would be collected and enforced in proceedings in accordance with the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.)
The board of trustees of the retirement system would be able to direct the actuary of the system to determine, if possible, the unfunded liability to the retirement system resulting from a violation by an employer of the TPAF law and related rules and regulations. The amount of this unfunded liability would be the responsibility of the employer and must be paid by the employer to the retirement system under such terms and conditions as the board of trustees would direct.
