Bill Text: NJ S1437 | 2010-2011 | Regular Session | Introduced
Bill Title: Allows members of PERS Prosecutors Part to purchase credit in Prosecutors Part for previous prosecutor service credited as regular PERS service.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2010-02-18 - Withdrawn from Consideration [S1437 Detail]
Download: New_Jersey-2010-S1437-Introduced.html
Sponsored by:
Senator ANTHONY R. BUCCO
District 25 (Morris)
SYNOPSIS
Allows members of PERS Prosecutors Part to purchase credit in Prosecutors Part for previous prosecutor service credited as regular PERS service.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the purchase of service credit in the Prosecutors Part of the Public Employees' Retirement System of New Jersey and supplementing P.L.1954, c.84 (C.43:15A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. A member of the Prosecutors Part may establish credit in the Prosecutors Part for all or a portion of service as a prosecutor, as defined by section 1 of P.L.2001, c.366 (C.43:15A-155), which was rendered prior to January 7, 2002 and credited in the Public Employees' Retirement System, established pursuant to P.L.1954, c.84 (C.43:15A-1 et seq.), by paying into the annuity savings fund (1) the amount of the difference between the contribution that the member paid into the retirement system and the contribution that would have been required if the member had membership in the Prosecutors Part and (2) 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, whichever is highest. The payment 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. The member shall pay the full cost of the purchase of this service credit. Neither the State nor the employer of the member shall be liable for any payment to the retirement system on behalf of the member for the purchase.
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 in the Prosecutors Part.
2. This act shall take effect immediately.
STATEMENT
This bill allows a member of the Prosecutors Part in the Public Employees' Retirement System (PERS) to establish credit in the Prosecutors Part for all or a portion of service as a prosecutor rendered prior to January 7, 2002 and credited in PERS generally by paying (1) the amount of the difference between the contribution that the member paid previously into PERS and the contribution that would have been required if the member had membership in the Prosecutors Part and (2) 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 fiscal year compensation, whichever is highest. The member will pay the full cost of the purchase and neither the State nor the employer of the member will be liable for any payment to PERS on behalf of the member for the purchase toward credit in the Prosecutors Part.
Current law provides benefits to members of the Prosecutors Part in PERS superior to the benefits for regular PERS service credit and imposes a higher employee contribution rate. PERS members who were prosecutors on January 7, 2002, the effective date of P.L.2001, c.366 which established the Prosecutors Part, became members of the Prosecutors Part and regular PERS service credit established prior to January 7, 2002 was established in the Prosecutors Part without further assessment of cost to the prosecutor. Persons who become prosecutors after January 7, 2002 do not have any regular PERS service credit established in the Prosecutors Part. This bill allows those who become members of the Prosecutors Part after January 7, 2002, to make payment to establish service credit in the Prosecutors Part for any prior prosecutor service that was credited as regular PERS service.
