Bill Text: NJ S1569 | 2014-2015 | Regular Session | Introduced


Bill Title: Allows certain members of PFRS to serve until age 70 upon approval by municipal governing body.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-02-27 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S1569 Detail]

Download: New_Jersey-2014-S1569-Introduced.html

SENATE, No. 1569

STATE OF NEW JERSEY

216th LEGISLATURE

 

INTRODUCED FEBRUARY 27, 2014

 


 

Sponsored by:

Senator  ANTHONY R. BUCCO

District 25 (Morris and Somerset)

 

 

 

 

SYNOPSIS

     Allows certain members of PFRS to serve until age 70 upon approval by municipal governing body.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act extending the mandatory retirement age in the Police and Firemen's Retirement System of New Jersey in certain circumstances and amending P.L.1944, c.255.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 5 of P.L.1944, c.255 (C.43:16A-5) is amended to read as follows:

     5.    (1) Any member in service who has attained age 55 years may retire on a service retirement allowance upon filing a written and duly executed application to the retirement system, setting forth at what time, not less than one month subsequent to the filing thereof, he desires to be retired. Any member in service who attains age 65 years shall be retired on a service retirement allowance forthwith on the first day of the next calendar month, except that a member hired prior to January 1, 1987 may remain a member of the system until the member attains age 68 years or 25 years of creditable service, whichever comes first, and a member who holds employment in a municipal law enforcement unit in an administrative position may remain a member of the system until the member attains age 70 years if the member is retained in service by the governing body of the municipality and written notice of that decision is provided to the board of trustees prior to the attainment by the member of age 65 years.

     (2)   Upon retirement for service a member shall receive a service retirement allowance which shall consist of:

     (a)   An annuity which shall be the actuarial equivalent of his aggregate contributions and

     (b)   A pension in the amount which, when added to the member's annuity, will provide a total retirement allowance of one-sixtieth of his average final compensation multiplied by the number of years of his creditable service, or 2% of his average final compensation multiplied by the number of years of his creditable service up to 30 plus 1% of his average final compensation multiplied by the number of years of creditable service over 30, or 50% of his final compensation if the member has established 20 or more years of creditable service, whichever is greater.

     (3)   Any member of the retirement system as of the effective date of P.L.1999, c.428 who has 20 or more years of creditable service at the time of retirement shall be entitled to receive a retirement allowance equal to 50% of the member's final compensation plus, in the case of a member required to retire pursuant to the provisions of subsection (1) of this section, 3% of final compensation multiplied


by the number of years of creditable service over 20 but not over 25.

     (4)   Upon the receipt of proper proofs of the death of a member who has retired on a service retirement allowance, there shall be paid to his beneficiary an amount equal to one-half of the compensation upon which contributions by the member to the annuity savings fund were based in the last year of creditable service.

(cf: P.L.2005, c.381, s.1)

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     Under current law, a member of the Police and Firemen's Retirement System of New Jersey (PFRS) must retire upon reaching 65 years of age.  This bill would allow a member holding an administrative position to stay until age 70 if the governing body of the municipality retains the member in service and if such a decision is communicated in writing to the PFRS board of trustees before the member turns 65.  For a primarily administrative position, the physical rigors of the job are less than for other police positions, and longevity in the position is an asset, not a liability. Therefore, it is appropriate to give the governing body of the municipality the discretion to allow an effective employee to continue in service beyond the current mandatory retirement age.

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