Bill Text: NJ ACR58 | 2012-2013 | Regular Session | Introduced

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Bill Title: Amends State Constitution to require annual contributions by the State and its political subdivisions to State-administered retirement systems.

Spectrum: Strong Partisan Bill (Republican 10-1)

Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly Appropriations Committee [ACR58 Detail]

Download: New_Jersey-2012-ACR58-Introduced.html

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ASSEMBLY CONCURRENT RESOLUTION No. 58

STATE OF NEW JERSEY

215th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION

 

 

Sponsored by:

Assemblyman  ALEX DECROCE

District 26 (Essex, Morris and Passaic)

Assemblywoman  SHEILA Y. OLIVER

District 34 (Essex and Passaic)

 

Co-Sponsored by:

Assemblymen Rumana, Bramnick, O'Scanlon, Wolfe, A.M.Bucco, Assemblywomen N.Munoz, Handlin, Assemblymen Peterson and Chiusano

 

 

 

 

SYNOPSIS

     Amends State Constitution to require annual contributions by the State and its political subdivisions to State-administered retirement systems.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  

A Concurrent Resolution proposing to amend Article VIII, Section II of the Constitution of the State of New Jersey by the addition of a new paragraph 8.

 

     Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

 

     1.    The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

 

PROPOSED AMENDMENT

 

     Amend Article VIII, Section II by the addition of a new paragraph 8 to read as follows:

     8.    Commencing July 1, 2011 and thereafter, the contribution required, by law, to be made by the State and by any political subdivision of the State to any defined benefit retirement system or fund administered by the State for public officers and employees in the State shall be made in full each year to each system or fund in the manner and at the time provided by law.  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.

 

     2.    When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

 

     3.    This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

     There shall be printed on each official ballot to be used at the general election, the following:

     a.     In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

     If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

     b.    In every municipality the following question:

 

		CONSTITUTIONAL AMENDMENT TO REQUIRE EACH PUBLIC EMPLOYER IN THE STATE TO PAY IN FULL ITS ANNUAL CONTRIBUTION TO PENSION PLANS FOR PUBLIC EMPLOYEES
	YES	Shall the amendment to Article VIII, Section II of the New Jersey Constitution, agreed to by the Legislature, requiring the State and each political subdivision of the State to pay each year, beginning July 1, 2011, the full amount of the contribution it is required to pay, as calculated by actuaries, to any pension plan operated by the State for public employees, and requiring the contribution to be computed by actuaries based on an annual valuation of the assets and liabilities of each plan, except that the State could comply with this requirement by making a payment of at least 1/7th of the full contribution in the first year and increasing its payment by at least an additional 1/7th in each of the six years thereafter, be approved?

 

		INTERPRETIVE STATEMENT
	NO	This constitutional amendment requires the State and each political subdivision of the State to pay each year, beginning on July 1, 2011, the full amount of the contribution that it is required by law to pay to any pension plan operated by the State for public employees.  A political subdivision of the State includes a county, municipality, and board of education, and any agency, board, commission, and authority thereof. The amendment requires the amount of the contribution to be determined by actuaries for each plan based on an annual report, prepared by the actuaries, that calculates the assets and liabilities of the plan.  The amendment permits the State to comply with this requirement by making a payment of at least 1/7th of the contribution in the first year and increasing its payment by at least an additional 1/7th in each of the following six years in order to permit the State to gradually adjust the annual appropriations act to accommodate these payments.

 

 

STATEMENT

 

     This concurrent resolution proposes a constitutional amendment to require the State, and each political subdivision of the State, to pay each year the full amount of the contribution it is required to make to any defined benefit pension plan operated by the State for public employees.  This requirement would commence July 1, 2011.  A political subdivision of the State includes a county, municipality, and board of education, and any agency, board, commission and authority thereof.  The amendment requires the contribution to include the normal contribution and the unfunded accrued liability contribution, in an amount determined by actuaries for each plan based on an annual report, prepared by the actuaries pursuant to consistent and generally accepted actuarial standards, that sets forth the assets and liabilities of the plan.  This amendment permits the State, for the first seven years, to phase in this requirement for the payments it is required to make, by paying at least 1/7th of the contribution in the first year with payments increasing by at least an additional 1/7th in each year thereafter in order to permit the State to gradually adjust the annual appropriations act to accommodate these payments.