Bill Text: NJ A3094 | 2012-2013 | Regular Session | Introduced
Bill Title: Concerns sharing of certain services by municipalities subject to provisions of "Municipal Rehabilitation and Economic Recovery Act."
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-11-16 - Reviewed by the Pension and Health Benefits Commission Recommend to not enact [A3094 Detail]
Download: New_Jersey-2012-A3094-Introduced.html
Sponsored by:
Assemblyman GILBERT "WHIP" L. WILSON
District 5 (Camden and Gloucester)
SYNOPSIS
Concerns sharing of certain services by municipalities subject to provisions of "Municipal Rehabilitation and Economic Recovery Act."
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the sharing of police services by certain municipalities and amending P.L.2002, c.43.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 19 of P.L.2002, c.43 (C.52:27BBB-19) is amended to read as follows:
19. Notwithstanding the provisions of any other law, rule or regulation to the contrary, an employee of a qualified municipality who is a member of the Public Employees' Retirement System or the Police and Firemen's Retirement System and is otherwise eligible for retirement may, upon the recommendation of the chief operating officer or the mayor, as the case may be, during the rehabilitation term or the mayor during the economic recovery term, with the approval of the director, receive an incentive [payment] for the termination of the employee's employment with the municipality.
As used in this section, "incentive [payment]" shall mean [a lump sum payment of 20 percent of the employee's annual base salary, exclusive of overtime] an additional five years of service credit under the Police and Firemen's Retirement System, and post-retirement health benefits equal to the benefits under the health benefits plan in effect in the municipality for that employee at the time of the termination of the employee's employment with the municipality, for any employee who has more than 20 years, but fewer than 25 years, of service credit in that retirement system.
An employee shall only be eligible for an incentive [payment] pursuant to this section if that [person] employee applies for [this termination benefit within 60 days of the appointment of the chief operating officer during the rehabilitation term, or within the first 60 days of the economic recovery term] the incentive within 30 days of written notice of termination of employment. [Payment shall be made not sooner than upon the receipt of the first pension check by the municipal employee].
This election to retire on the part of the municipal employee shall be communicated by the member to the retirement system pursuant to Title 43 of the Revised Statutes; however, once the employee has elected to retire, that decision shall be final.
(cf: P.L.2009, c.337, s.5)
2. Section 62 of P.L.2002, c.43 (C.52:27BBB-60) is amended to read as follows:
62. During the rehabilitation
and economic recovery terms, the
qualified municipality may enter into arrangements with other municipalities,
counties, local public authorities, or the State, for the purpose of affording
the municipality those benefits which may accrue pursuant to any laws providing
for contracted provision of goods or services; provided, however, this
provision shall not require that an agreement for the shared provision of law
enforcement services for a qualifying municipality include the provisions of
subsection a. of section 8 of P.L.2007, c.63 (C.40A:65-8). Notwithstanding
any other provision of law to the contrary all State agencies are authorized to
enter into such agreements or arrangements with the qualified municipality
during the rehabilitation and economic recovery terms as are necessary or
useful in furthering the purposes of P.L.2002, c.43 (C.52:27BBB-1 et al.).
(cf: P.L.2009, c.337, s.10)
3. This act shall take effect immediately.
STATEMENT
This bill would permit a municipality subject to the provisions of the "Municipal Rehabilitation and Economic Recovery Act," P.L.2002, c.43 (C.52:27BBB-1 et seq.) to pay a retirement incentive to any member of the Police and Firemen's Retirement System employed by the municipality who has more than 20 years but less than 25 years of credited service and who is otherwise eligible for retirement, if that employee terminates his or her employment with the municipality and retires.
Under current law, such a municipality could pay an incentive payment as a lump sum payment of 20% of the employee's annual base salary, exclusive of overtime, to an employee who agrees to terminate his or her employment with the municipality and retire. Under the provisions of the bill, the retirement incentive would be an additional five years of service credit under the Police and Firemen's Retirement System, and post-retirement health benefits equal to the benefits under the health benefits plan in effect in the municipality for that employee at the time of the termination of the employee's employment with the municipality, for any employee who has more than 20 years, but fewer than 25 years, of service credit in that retirement system. In order to obtain this incentive, an eligible employee must apply for it within 30 days of written notice of termination of employment.
The bill also provides that, with respect to the statutory authority for a municipality subject to the provisions of the "Municipal Rehabilitation and Economic Recovery Act" to enter into contracts for the provision of goods and services with other public entities, (essentially shared services agreements), that authority, in the case of a shared service agreement for law enforcement services, shall not require that the municipality include the provisions of subsection a. of section 8 of P.L.2007, c.63 (C.40A:65-8). That statute requires whenever two or more local units enter into an agreement, for the shared provision of law enforcement services, the shared services agreement must recognize and preserve the seniority, tenure, and pension rights of every full-time law enforcement officer who is employed by each of the participating local units and who is in good standing at the time the ordinance authorizing the shared services agreement is adopted, and none of those law enforcement officers may be terminated, except for cause.
