Bill Text: NJ A4329 | 2022-2023 | Regular Session | Introduced
Bill Title: Permits purchase of service credit in PERS for period of time after termination of public employment due to COVID-19 pandemic if member returned to PERS employment within 12 months.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-06-20 - Introduced, Referred to Assembly State and Local Government Committee [A4329 Detail]
Download: New_Jersey-2022-A4329-Introduced.html
Sponsored by:
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
SYNOPSIS
Permits purchase of service credit in PERS for period of time after termination of public employment due to COVID-19 pandemic if member returned to PERS employment within 12 months.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the purchase of service credit in the Public Employees' Retirement System and amending P.L.1954, c.84.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 8 of P.L.1954, c.84 (C.43:15A-8) is amended to read as follows:
8. a. If a member of the retirement system has been discontinued from service without personal fault or through leave of absence granted by an employer or permitted by any law of this State and has not withdrawn the accumulated member's contributions from the retirement system, the membership of that member may continue, notwithstanding any provisions of this act if the member returns to service within a period of 10 years from the date of discontinuance from service.
No credit for pension purposes shall be allowed to the member covering the period of the discontinuance, unless leave of absence shall have been granted by the employer and the board, as provided for in section 39 of this act.
b. If an employee who has withdrawn the accumulated member's contributions from the former "State Employees' Retirement System" or the retirement system as provided in section 41 of this act is re-enrolled as a member of the retirement system, that member may purchase credit for all of the previous membership service by paying into the annuity savings fund the amount required by applying the factor, supplied by the actuary as being applicable to the member's age at the time of the purchase, to the member's salary at that time, or to the highest annual compensation for service in this State for which contributions shall have been made during any fiscal year of membership or to the highest annual compensation for service in this State during any fiscal year for which credit is purchased, whichever is highest. The purchase may be made in regular installments, equal to at least one-half the full normal contribution to the retirement system, over a maximum period of 10 years.
Any member electing to purchase service credit hereunder who retires prior to completing the payments as agreed with the retirement system will receive pro rata credit for service purchased prior to the date of retirement, but if the member so elects at the time of retirement, the member may make the additional lump-sum payment required at that time to provide full credit.
c. Credit for pension purposes shall be allowed to a member of the retirement system covering a period of discontinuance from service due directly to the COVID-19 pandemic if the member elects to purchase credit in accordance with this subsection. A member shall be eligible to purchase such credit only if: (1) the member was discontinued from service without personal fault due directly to the COVID-19 pandemic; (2) the member returned to service in a position eligible for membership in the retirement system within 12 months from the date of discontinuance from service; and (3) the member returns all of the accumulated member's contributions withdrawn from the retirement system during the period of discontinuance. If the member complies with this subsection the member shall be placed in the same membership tier that the member was in prior to the discontinuance.
The member may purchase service credit by paying into the annuity savings fund the amount required by applying the factor, supplied by the actuary as being applicable to the member's age at the time of the purchase, to the member's salary at that time, or to the highest annual compensation for service in this State for which contributions shall have been made during any fiscal year of membership or to the highest annual compensation for service in this State during any fiscal year, whichever is highest. The purchase may be made in regular installments, equal to at least one-half the full normal contribution to the retirement system, over a maximum period of 10 years. Any member electing to purchase service credit hereunder who retires prior to completing the payments as agreed with the retirement system will receive pro rata credit for service purchased prior to the date of retirement, but if the member so elects at the time of retirement, the member may make the additional lump-sum payment required at that time to provide full credit.
(cf: P.L.1991, c.138, s.6)
2. This act shall take effect immediately and shall be retroactive to January 1, 2021.
STATEMENT
This bill would permit the purchase of service credit by a member of the Public Employees' Retirement System (PERS) for time that the member was not working because the member's public employment was terminated, without personal fault, due directly to the COVID-19 pandemic. This purchase would be allowed if the member returned to service in a PERS-eligible position within 12 months from the date of discontinuance from service due to COVID-19 and returned all of the accumulated member's contributions withdrawn from the retirement system.
