Bill Text: NJ A4462 | 2024-2025 | Regular Session | Introduced
Bill Title: Eliminates salary reference for retired members of PERS returning to employment in teaching staff positions.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-06-03 - Introduced, Referred to Assembly State and Local Government Committee [A4462 Detail]
Download: New_Jersey-2024-A4462-Introduced.html
Sponsored by:
Assemblyman STERLEY S. STANLEY
District 18 (Middlesex)
SYNOPSIS
Eliminates salary reference for retired members of PERS returning to employment in teaching staff positions.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the return to employment by a retired member of the Public Employees' Retirement System, and amending P.L.1966, c.217.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 27 of P.L.1966, c.217 (C.43:15A-57.2) is amended to read as follows:
27. a. Except as provided in subsections b., c., and d. of this section, if a former member of the State Employees' Retirement System or the retirement system, who has been granted a retirement allowance for any cause other than disability, becomes employed again in a position which makes [him] the person eligible to be a member of the retirement system, [his] the former member's retirement allowance and the right to any death benefit as a result of [his] former membership [,] shall be canceled until [he] the member again retires.
[Such person] The former member shall be re-enrolled in the retirement system and shall contribute thereto at a rate based on [his] age at the time of re-enrollment. [Such person] The former member shall be treated as an active member for determining disability or death benefits while in service and no benefits pursuant to an optional selection with respect to [his] the former membership shall be paid if [his] death shall occur during the period of such re-enrollment.
Upon subsequent retirement of such member, [his] any former retirement allowance shall be reinstated together with any optional selection, based on [his] the former membership. [In addition, he] The former member shall receive an additional retirement allowance based on [his] the subsequent service as a member computed in accordance with applicable provisions of [chapter 84 of the laws of 1954] P.L.1954, c.84 (C.43:15A-1 et seq.); provided, however, that [his] the total retirement allowance upon such subsequent retirement shall not be a greater proportion of [his] the final compensation than the proportion to which [he] the member would have been entitled had [he] the member remained in service during the period of [his] prior retirement. Any death benefit to which such member shall be eligible shall be based on [his] the latest retirement, but shall not be less than the death benefit that was applicable to [his] the former retirement.
b. The cancellation, re-enrollment, and additional retirement allowance provisions of subsection a. of this section shall not apply to a former member of the retirement system who, after having been granted a retirement allowance, becomes employed again by: (1) an employer or employers in a position or positions for which the aggregate compensation does not exceed $15,000 per year; or (2) [if the compensation exceeds $10,000 per year, by an employer that is] a public institution of higher education as defined in N.J.S.18A:62-1 in a teaching staff position. The Director of the Division of Pensions and Benefits may from time to time adjust the amount in paragraph (1) of this subsection. This adjustment shall be 3/5 of the percentage of change in the index, as defined in section 1 of P.L.1958, c.143 (C.43:3B-1), over a period of time as determined by the director.
c. The cancellation, reenrollment, and additional retirement allowance provisions of subsection a. and the compensation limitations of subsection b. of this section shall not apply to a former member of the retirement system who, after having been granted a retirement allowance, becomes employed by:
(1) the State Department of Education in a position of critical need as determined by the State Commissioner of Education, or [becomes employed by]
(2) a board of education in a position of critical need as determined by the superintendent of the district on a contractual basis for a term of not more than one year [; except that the] .
The cancellation, reenrollment, and additional retirement allowance provisions and the compensation limitations shall apply if the former member becomes employed within 120 days of retirement in a position with the employer from which the member retired.
Nothing herein shall preclude a former member so reemployed by a board of education from renewing a contract for one additional year, provided that the total period of employment with any individual board of education does not exceed a two-year period.
d. The cancellation, reenrollment, and additional retirement allowance provisions of subsections a., b., and c. of this section shall not apply to a former member of the retirement system who was granted a retirement allowance pursuant to section 1 of P.L.1985, c.414 (C.43:15A-47.2) prior to the effective date of P.L.2011, c.78.
(cf: P.L.2011, c.78, s.34)
2. This act shall take effect immediately.
STATEMENT
This bill eliminates a reference to a salary threshold for retired members of the Public Employees' Retirement System (PERS) who return to employment in teaching staff positions with a public institution of higher education. Under current law, the cancellation and re-enrollment requirement will not apply to a former member of the retirement system who, after having been granted a retirement allowance, becomes employed again by a public institution of higher education in a teaching staff position if the compensation exceeds $10,000 per year.
The $10,000 threshold was a reference to a prior version of the law and is not needed because the legislative intent is to exempt retirees returning to teaching positions in public institutions of higher education without regard to their annual compensation.
The amendments in this bill are based on a New Jersey Law Revision Commission proposal.
