Bill Text: NJ A3363 | 2014-2015 | Regular Session | Introduced
Bill Title: Requires State to make pension contribution payments quarterly; provides reduction in State employee contribution rate of 0.1% and penalty for State of 0.1% of payroll for each month State is in arrears for pension payment.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2014-10-31 - Reviewed by the Pension and Health Benefits Commission Recommend to not enact [A3363 Detail]
Download: New_Jersey-2014-A3363-Introduced.html
Sponsored by:
Assemblyman JOSEPH CRYAN
District 20 (Union)
SYNOPSIS
Requires State to make pension contribution payments quarterly; provides reduction in State employee contribution rate of 0.1% and penalty for State of 0.1% of payroll for each month State is in arrears for pension payment.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the State's required payments to certain pension systems and amending P.L.2010, c.1.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 38 of P.L.2010, c.1 (C.43:3C-14) is amended to read as follows:
38. a. Commencing July 1, 2011 and thereafter, the contribution required, by law, to be made by the State to the Teachers' Pension and Annuity Fund, established pursuant to N.J.S.18A:66-1 et seq., the Judicial Retirement System, established pursuant to P.L.1973, c.140 (C.43:6A-1 et seq.), the Prison Officers' Pension Fund, established pursuant to P.L.1941, c.220 (C.43:7-7 et seq.), the Public Employees' Retirement System, established pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.), the Consolidated Police and Firemen's Pension Fund, established pursuant to R.S.43:16-1 et seq., the Police and Firemen's Retirement System, established pursuant to P.L.1944, c.255 (C.43:16A-1 et seq.), and the State Police Retirement System, established pursuant to P.L.1965, c.89 (C.53:5A-1 et seq.), shall be made in full each State fiscal year to each system or fund in the manner [and at the time] provided by law on a quarterly basis on August 15, November 15, February 15 and May 15. The State shall notify the chairs of the budget committees of the two houses of the Legislature of any failure to make the required quarterly payments in a timely manner. The contribution shall be computed by actuaries for each system or fund based on an annual valuation of the assets and liabilities of the system or fund pursuant to consistent and generally accepted actuarial standards and shall include the normal contribution and the unfunded accrued liability contribution. The State with regard to its obligations funded through the annual appropriations act shall be in compliance with this requirement provided the State makes a payment, to each State-administered retirement system or fund, of at least 1/7th of the full contribution, as computed by the actuaries, in the State fiscal year commencing July 1, 2011 and a payment in each subsequent fiscal year that increases by at least an additional 1/7th until payment of the full contribution is made in the seventh fiscal year and thereafter.
b. If in any State fiscal year the State fails to make the full payment of the normal contributions and the accrued liability contributions to the Teachers' Pension and Annuity Fund, the Judicial Retirement System, the Prison Officers' Pension Fund, the Public Employees' Retirement System, the Consolidated Police and Firemen's Pension Fund, the Police and Firemen's Retirement System, and the State Police Retirement System, pursuant to subsection a. of this section, for each month in the ensuing fiscal year that the State contributions remain unpaid, the active State employee contribution rate, pursuant to N.J.S.18A:66-29, section 26 of P.L.1981, c.470 (C.43:6A-34.1), section 25 of P.L.1954, c.84 (C.43:15A-25), section 8 of P.L.1955, c.257 (C.43:15A-104), section 2 of P.L.1972, c.167 (C.43:15A-136), section 3 of P.L.2001, c.259 (C.43:15A-144), section 3 of P.L.2001, c.366 (C.43:15A-157), section 15 of P.L.1944, c.255 (C.43:16A-15), and section 38 of P.L.1965, c.89 (C.53:5A-38), as appropriate, shall be reduced by 0.1% and the State shall pay an additional 0.1% of its total payroll to those systems to be allocated among them in proportion to the number of active State employee members in each fund, until the State makes the payment required pursuant to subsection a. of this section in full.
(cf: P.L.2010, c.1, s.38)
2. This act shall take effect on July 1 next following the date of enactment.
STATEMENT
This bill provides that the State will make its required contributions to the State-administered defined benefit pension systems each State fiscal year on a quarterly basis on August 15, November 15, February 15 and May 15. It also requires the State to notify the chairs of the budget committees of the two houses of the Legislature of any failure to make the required quarterly payments in a timely manner. The State-administered defined benefit pension systems are the Teachers' Pension and Annuity Fund, the Judicial Retirement System, the Prison Officers' Pension Fund, the Public Employees' Retirement System, the Consolidated Police and Firemen's Pension Fund, the Police and Firemen's Retirement System, and the State Police Retirement System.
In addition, the bill provides that if in any State fiscal year the State fails to make the full payment of the normal contributions and the accrued liability contributions to those pension systems, for each month in the ensuing fiscal year that those State contributions remain unpaid, the active State employee contribution rate will be reduced by 0.1% and the State will pay an additional 0.1% of its total payroll to those systems to be allocated among them in proportion to the number of active State employee members in each fund, until the State makes the required payment in full.
The bill would take effect on July 1 next following the date of enactment.
